Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Check my work The Customer Support Department at Wadsworth Supply is analyzing the costs of its services. A cost analyst has collected monthly data
Check my work The Customer Support Department at Wadsworth Supply is analyzing the costs of its services. A cost analyst has collected monthly data on the three main functions of the department and the total costs for the last year, which follow. Special Reports Customer Accounts Customer Support Costs ($000) Month Completed Maintained Transactions Processed 1 23 2,835 89,140 $ 1,586 2 25 2,676 69,240 1,688 3 45 2,637 75,540 1,590 4 29 1,871 53,580 1,536 5 37 2,028 54,230 1,710 6 33 1,920 48,710 1,326 7 43 1,206 32,770 1,330 8 48 1,137 29,640 1,396 9 28 1,369 32,240 1,163 10 34 2,625 69,870 1,476 11 20 1,911 53,110 1,291 12 35 Totals 400 1,985 24,200 51,930 660,000 1,244 $ 17,336 The cost analyst also has identified the Customer Support Department costs for each of the three main functions. Any costs not assigned to one of the functions is considered general administration cost. The costs for the last year (in thousands) follow: Total cost of special reports. $ 5,056 Total cost of maintaining customer accounts Total cost of processing transactions 5,566 2,574 Required: a-1. What is the cost per unit for special reports completed? a-2. What is the cost per unit for customer accounts maintained? a-3. What is the cost per unit for transactions processed? b. Assuming the following level of cost-driver volumes for a month, what are the accounting department's estimated costs of doing business using the account analysis approach? 40 special reports 2,500 customer accounts maintained 55,000 transactions processed Complete this question by entering your answers in the tabs below. Req A1 to A3 Req B a-1. What is the cost per unit for special reports completed? a-2. What is the cost per unit for customer accounts maintained? a-3. What is the cost per unit for transactions processed? Note: Round your answer to 2 decimal places. Activity a-1. Complete special reports a-2. Maintain customer accounts a-3. Process transactions Cost per Unit < Req A1 to A3 Req B > Show less
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started