Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 Analyses Accounts Processed Service Costs 61,900 61,300 58, 00 59, 500 58,500 60, 500 60, 900 58, 600 59,000 61,000 61,500 58, 100 60, 300 58,600 61,000 Month 2 340 310 210 270 290 210 920 2 2 1, 300 1,090 3 4 980 5 6 7 1,070 990 860 1,140 860 1,250 1,150 1,110 930 960 3 340 8 230 C 3 170 10 C 190 11 200 12 13 1 330 3 270 300 14 15 150 1,040 200 11 1 200 330 270 300 150 1, 150 1,110 61,500 58, 100 60, 300 58, 600 61,000 61, 600 12 1 13 930 14 C 960 15 3 1,040 1, 120 16 0 300 Totals 31 4,110 16,770 s961,100 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. ces Total cost of paychecks processed Total cost of maintaining customer accounts Total cost of performing special analyses Total fixed costs (total for 16 months) $187,824 124,944 121,210 527,122 Total costs $961,100 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? 1,030 paychecks processed. 160 customer accounts maintained. 3 special analyses. ok nt 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 1. 2 Maintain customer accounts Perform special analyses 3 Book Assuming the following level of cost-driver volumes for a month, what are the accounting department's estimated cos doing business using the account analysis approach? 1,030 paychecks processed. 160 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 amou Sho Estimated cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions