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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. Month 1 2 3 2ee 5 6 7 8 9 10 11 12 13 14 15 16 Totals Special Customer Paychecks Accounting Analyses Accounts Processed Service Costs 1,25e $ 59,600 3 250 980 61,200 1 190 1,300 69,900 278 1,050 61,400 1 340 92e 61,600 33e 870 61,100 2 188 810 59,500 B 270 1,068 58,600 1 210 1,250 61,300 190 1, e8e 61,400 3 32e 1,130 60,000 1 228 1,070 61,400 1 340 1,270 60,300 1 17e 85e 58,500 3 198 888 60,300 2 340 800 59,900 22 4, eie 16,380 $966,400 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 $185,894 124, 310 87,340 569,656 $966,400 Required: 0-1. What is the cost per unit for paychecks processed? -2. What is the cost per unit for customer accounts maintained? .-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? 1,080 paychecks processed. 210 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 > 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? . 1.080 paychecks processed. 210 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? 1,080 paychecks processed. 210 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
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