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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 past
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. 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. 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? - 1,000 paychecks processed. - 200 customer accounts maintained. - 3 special analyses
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