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Mc Graw Hill Home Wk 3 Apply: Quiz [due Day 7] 1 Gradebook ezto.mheducation.com Gradebook M Question 1 - Wk 3 - Apply: Quiz
Mc Graw Hill Home Wk 3 Apply: Quiz [due Day 7] 1 Gradebook ezto.mheducation.com Gradebook M Question 1 - Wk 3 - Apply: Quiz [due Day... Course Hero Saved Help Save & Exit Submit The accounting department of a large limousine company is analyzing the costs of its services. The cost data and level of activity for the past 16 months follow. Month Special Customer Paychecks Accounting Analyses Accounts Processed Service Costs 1 3 280 15 2 0 190 1,040 1,000 $ 61,700 58,600 3 points 1 270 880 61,100 4 2 310 1,170 61,700 5 0 180 Skipped 1,050 58,700 6 2 330 960 61,000 7 1 250 950 61,400 8 1 350 860 59,800 9 3 230 980 58,500 10 0 170 810 60,200 11 1 170 800 58,500 12 3 210 1,240 61,900 13 3 220 890 60,300 14 1 230 1,060 60,500 15 1 270 1,040 61,100 16 1 210 Totals 23 3,870 1,220 15,950 60,600 $965,600 In addition to the above information, you learn that the accounting department had the following total costs for the past 16 months for each of the following. Total cost of paychecks processed Total cost of maintaining customer accounts Total cost of performing special analyses Total fixed costs (total for 16 months) Total costs $178,640 117,261 91,080 578,619 $965,600 Required: a-1. What is the cost per unit for paychecks processed? a-2. What is the cost per unit for customer accounts maintained? a-3. What is the cost per unit for special analyses performed? 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? 920 paychecks processed. 180 customer accounts maintained. 4 special analyses. < Prev 1 of 6 Next >
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