Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 5-53 (Static) Account Analysis (LO 5-3) The accounting department of a large limousine company is analyzing the costs of its services. The cost data

image text in transcribed
image text in transcribed
Problem 5-53 (Static) Account Analysis (LO 5-3) 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 Analyses BLOU AANNNN OPPON Customer Paychecks Accounts Processed 325 1,029 310 993 302 1,268 213 1,028 222 984 214 712 131 762 123 739 115 708 296 1,232 978 222 929 217 1,059 132 942 300 1,299 315 1,283 3,652 15,945 Accounting Service Costs $ 63,800 68,900 64, eee 61,300 61,600 52,800 51,020 54,300 50, 500 64,800 58, eee 57,500 62,200 54,900 71,530 64,809 $959,950 213 15 16 Totals to search O E O 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 $180, 100 Total cost of maintaining customer accounts 109,600 Total cost of performing special analyses 120, eee Total fixed costs (total for 16 months) 550, 250 Total costs $959,95 Required: 2-1. What is the cost per unit for paychecks processed? a-2. What is the cost per unit for customer accounts maintained? 2-3. 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? . 1.000 paychecks processed. 200 customer accounts maintained. . 3 special analyses. Complete this question by entering your answers in the tabs below. search O RA @ 00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting The Basis For Business Decisions

Authors: Robert F. Meigs, Walter B Meigs

5th Edition

007041551X, 9780070415515

More Books

Students also viewed these Accounting questions

Question

IPv 6 can offer IP addresses as many as 1 . 5 times of IPv 4 .

Answered: 1 week ago

Question

How does the concept of hegemony relate to culture?

Answered: 1 week ago