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 Customer

Accounts Paychecks

Processed Accounting

Service Costs 1 3 260 840 $ 61,600 2 3 180 1,190 59,300 3 3 330 1,270 59,400 4 0 180 1,270 58,100 5 1 280 1,100 61,600 6 0 270 940 61,500 7 1 200 1,260 58,700 8 3 220 920 61,600 9 2 270 1,210 61,000 10 3 260 1,120 59,100 11 0 190 1,080 59,100 12 2 310 840 60,000 13 4 200 840 59,300 14 0 150 800 60,000 15 1 210 880 61,500 16 1 170 1,130 59,400 Totals 27 3,680 16,690 $ 961,200

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 $ 195,273 Total cost of maintaining customer accounts 114,080 Total cost of performing special analyses 109,350 Total fixed costs (total for 16 months) 542,497 Total costs $ 961,200

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.

200 customer accounts maintained.

3 special analyses.