Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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. 300 Month 1 2 3 4 5 6 7 8 9 93e Special Customer Paychecks Analyses Accounts Processed 3 340 1,270 3 880 2 260 1,080 3 160 980 268 980 2 208 1,130 3 180 1 320 870 1 23e 1,000 2 17e Bee 3 310 940 4 240 1,140 3 328 960 4 298 1,130 1 250 870 220 1,15e 40 4,050 16,30 Accounting Service Costs $ 58,480 62,00 58,688 58,888 59,00 59,888 59,680 58,480 58, see 60,200 58,888 59,900 59,080 59,900 58,780 58,500 $948, 100 11 12 13 14 16 Totals 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 $181,139 124,740 158,480 483,821 $948, 100 Required: 6-1. What is the cost per unit for paychecks processed? --2. What is the cost per unit for customer accounts maintained? 2-3. 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? . 1.060 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 Process paychecks Maintain customer accounts 3. Perform special analyses 1. 2. (Required A Required B 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 Accounting Month Analyses Accounts Processed Service Costs 1 3 340 1,270 $ 58,480 2 3 300 880 62,080 3 2 260 1,000 58,600 4 3 160 980 58,888 5 3 260 980 59,880 2 200 1,13e 59,880 7 3 180 93e 59,600 8 1 320 870 58,488 1 230 1,eee 58, see 10 2 17e see 68,280 11 3 310 940 58,888 12 4 240 1,140 59,900 13 3 320 960 59,00 14 4 298 1,130 59,988 15 1 250 870 58,798 16 220 1,150 58, 588 Totals 40 4,850 16,30 $948, 100 6 9 2 In addition to the above information, you learn that the accounting department had the following total costs for the past 15 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 $181,139 124,740 158,480 483, 821 $948, 100 Required: 0-1. What is the cost per unit for paychecks processed? .-2. What is the cost per unit for customer accounts maintained? 2-3. 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? . 1.060 paychecks processed. . 190 customer accounts maintained. 3 special analyses. Complete this question by entering your answers in the tabs below. 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? 1,060 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 Estimated cost
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started