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The Customer Support Department at Wadsworth Supply is analyzing the costs of its services. A cost analyst has collected monthly data on the three main
The Customer Support Department at Wadsworth Supply is analyzing the costs of its services. A cost analyst has collected monthly data on the three main functions of the department and the total costs for the last year, which follow. Month Special Reports Completed Customer Accounts Maintained Processed Transactions Customer Support Costs ($800) 1 20 2,850 90,640 $ 1,706 1234567820 28 2,691 70,740 1,808 42 2,652 77,040 1,710 26 1,886 55,080 1,656 40 2,058 55,730 1,992 30 1,950 50,210 1,446 46 1,236 34,270 1,450 45 1,167 31,140 1,516 9 31 1,399 32,990 1,235 37 2,655 70,620 1,536 11 23 1,941 53,860 1,330 12 32 2,015 Totals 400 24,500 52,680 675,000 1,202 $ 18,587 The cost analyst also has identified the Customer Support Department costs for each of the three main functions. Any costs not assigned to one of the functions is considered general administration cost. The costs for the last year (in thousands) follow: Total cost of special reports Total cost of maintaining customer accounts $ 5,062 6,370 Total cost of special reports $ 5,062 Total cost of maintaining customer accounts Total cost of processing transactions 6,370 2,835 Required: a-1. What is the cost per unit for special reports completed? a-2. What is the cost per unit for customer accounts maintained? a-3. What is the cost per unit for transactions processed? 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? .40 special reports 2,500 customer accounts maintained 55,000 transactions processed Complete this question by entering your answers in the tabs below. Req A1 to A3 Req B a-1. What is the cost per unit for special reports completed? a-2. What is the cost per unit for customer accounts maintained? What is the cost nor unit for trancactione pre processed? Complete this question by entering your answers in the tabs below. Req A1 to A3 Req B a-1. What is the cost per unit for special reports completed? a-2. What is the cost per unit for customer accounts maintained? a-3. What is the cost per unit for transactions processed? Note: Round your answer to 2 decimal places. Activity a-1. Complete special reports a-2. Maintain customer accounts a-3. Process transactions Cost per Unit Show less
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