The accounting department of a large limousine company is analyzing the costs of its services. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/664ddf53e776f_475664ddf5388fbd.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/664ddf5497b34_476664ddf542ae3a.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/664ddf5547860_476664ddf54db3b4.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/664ddf55cc58d_477664ddf557c025.jpg)
Transcribed Image Text:
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 Month Analyses Accounts Processed Accounting Service Costs 1 3 310 1,280 $61,100 2 A 310 1,240 60,400 2 270 940 59,000 1 190 980 60,300 2 320 1,260 59,600 3 160 930 59,800 7 2 340. 1,020 58,600 8 3 310 1,160 58,500 9 3 270 980 59,900 10 2 160 1,100 59,700 11 260 1,090 59,600 12 1 180 1,1601 60,600 13 2 330 910 58,400 14 1 170 820 58,800 15 2 240 1,210 59,500 16 2 310 850 59,700 Totals 34 4,130 16,930 $953,500 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 $190,001 125,139 135,660 494,620 $953,500 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 de business using the account analysis approach? -1,000 paychecks processed. 190 customer accounts maintained. .3 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 Cost per unit 1. Process paychecks 2 Maintain customer accounts 3 Perform special analyses Required A Required 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. 190 customer accounts maintained. 3 special analyses. (Round "Unit cost" to 2 decimal places. Round "Average fixed cost" and final answer to the nearest whole dollar amount.) show less A Estimated cost 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. 190 customer accounts maintained. 3 special analyses. (Round "Unit cost" to 2 decimal places. Round "Average fixed cost" and final answer to the nearest whole dollar amount.) show less A Estimated cost 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 Month Analyses Accounts Processed Accounting Service Costs 1 3 310 1,280 $61,100 2 A 310 1,240 60,400 2 270 940 59,000 1 190 980 60,300 2 320 1,260 59,600 3 160 930 59,800 7 2 340. 1,020 58,600 8 3 310 1,160 58,500 9 3 270 980 59,900 10 2 160 1,100 59,700 11 260 1,090 59,600 12 1 180 1,1601 60,600 13 2 330 910 58,400 14 1 170 820 58,800 15 2 240 1,210 59,500 16 2 310 850 59,700 Totals 34 4,130 16,930 $953,500 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 $190,001 125,139 135,660 494,620 $953,500 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 de business using the account analysis approach? -1,000 paychecks processed. 190 customer accounts maintained. .3 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 Cost per unit 1. Process paychecks 2 Maintain customer accounts 3 Perform special analyses Required A Required 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. 190 customer accounts maintained. 3 special analyses. (Round "Unit cost" to 2 decimal places. Round "Average fixed cost" and final answer to the nearest whole dollar amount.) show less A Estimated cost 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. 190 customer accounts maintained. 3 special analyses. (Round "Unit cost" to 2 decimal places. Round "Average fixed cost" and final answer to the nearest whole dollar amount.) show less A Estimated cost
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Use the Principle of Induction to prove the formula for all natural numbers \(n\). \(1+2+3+\cdots+n=\frac{n(n+1)}{2}\)
-
a) What is cloud computing? b) How do cloud computing and mainframe architectures differ? c) How do cloud computing and client-server architectures differ? d) What are the advantages of cloud...
-
How does encumbering funds help keep a government entitys spending within its budget?
-
What laboratory analysis may be helpful to a forensic accountant?
-
Draw a fish-bone chart depicting the reasons that might give rise to an incorrect fee statement at the time you go to pay for your registration at school.
-
ABC Company wants to value its company using the multiples method, based on ABC's earnings and on the average P/E Ratio of 3 public companies.Use the information below to calculate the value of ABC...
-
1. A ________ contains the actual values that are plotted on thechart. a. data source c. category values b. data series d. legend 2. The ____ is the only one of the following charts to...
-
How did you get the $ 3 3 5 0 for the prepayments from $ 8 4 0 0 ?
-
Consider the following information: 1 - Jan - 2 0 3 1 - Dec - 2 0 Inventories: Direct Materials $ 1 1 , 0 0 0 $ 8 , 0 0 0 Work in Process 1 3 , 0 0 0 1 2 , 0 0 0 Finished Goods 9 , 5 0 0 6 , 5 0 0...
-
During January the following purchase transactions occurred: 8-Jan Purchased $5,900 of merchandise from The Chocolate Shop. Terms 2/15, n/45, FOB shipping point. The Candy Store prepaid...
-
ds Suppose quantity s is a length and quantity t is a time. Suppose the quantities v and a are defined by v = (a) What is the dimension of v? and a= dt dv dt (Use the following as necessary: Land T.)...
-
1 - In a digital world of businesses, you as manager have two options to explore new product development potential areas. A) Copy other competitors' ideas and improve productivity to increase...
-
Having reported back to work as a freshly minted MBA, your boss called you into her office to discuss some issues that have been bothering her lately. After discussions, she asked you to determine...
-
If you want to solve a minimization problem by applying the geometric method to the dual problem, how many variables and problem constraints must be in the original problem?
-
On October 31, 2020, West Company purchased \(\$ 10,000\) of East Company bonds. West Company plans to hold the bonds for an indefinite period of time. West Company elects to account for the debt...
-
Provide the definition of a current liability.
-
Explain how the measurement of a liability is related to its cause.
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App