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The accounting department of a large limousine company is analyzing the costs of its services. The cost data and level of activity for the
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. Special Customer Paychecks Analyses Accounts Processed Service Costs Month 2 Accounting 9 1132 123456780 210 280 1,140 880 $ 60,800 61,600 310 1,080 61,900 300 1,250 60,400 250 1,230 60,700 2 280 1,060 59,300 2 280 970 58,300 3 180 890 58,100 10 11 12 13 14 222124 310 1,090 58,200 2 350 990 60,300 160 960 59,100 320 1,150 61,700 190 820 60,600 320 1,170 61,200 15 16 1 270 890 59,200 3 350 840 59,000 Totals 33 4,360 16,410 $960,400 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 $188,715 134,724 133,980 502,981 $960,400
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Step 1 Calculate the Cost Per Unit for Each Activity Special Analyses Total cost of performing special analyses 133980 Total number of special analyse...Get Instant Access to Expert-Tailored Solutions
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