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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 Month Analyses Accounts Accounting Service Costs Paychecks Processed 1 2 330 1,020 $ 60,100 2 1 250 1,250 60,700 3 3 170 890 59,800 4 4 340 1,000 61,300 5 1 240 1,030 61,800 6 2 260 1,210 60,700 7 3 300 1,080 60,900 8 3 240 1,080 60,300 9 2 210 950 62,000 10 1 220 980 59,200 11 1 160 990 60,800 12 1 230 1,170 61,400 13 4 200 1,020 60,200 14 0 250 850 60,300 15 2 350 16 2 Totals 32 210 3,960 1,030 1,090 16,640 59,400 58,600 $967,500 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 $189,696 122,364 128,960 526,480 $967,500 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 doi business using the account analysis approach? 1,080 paychecks processed. 230 customer accounts maintained. . 4 special analyses. Complete this question by entering your answers in the tabs below. Required A Required B 1. What is the cost per unit for paychecks processed? (Round your answer to 2 decimal places.) 2. What is the cost per unit for customer accounts maintained? (Round your answer to 2 decimal places.) 3. What is the cost per unit for special analyses performed? Activity 1. Process paychecks 2. Maintain customer accounts 3. Perform special analyses Cost per unit < Required A Required B >
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