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:

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 . . . . . . . . . . . . . . . . . .$180,100

Total cost of maintaining customer accounts . . . . . . . . . . 109,600

Total cost of performing special analyses . . . . . . . . . . . . . 120,000

Total fixed costs (total for 16 months) . . . . . . . . . . . . . . . 550,250

Total costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $959,950

Required

a. What is the cost per unit for

(1) Paychecks processed,

(2) Customer accounts maintained, and

(3) 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?

• 1,000 paychecks processed

• 200 customer accounts maintained

• 3 special analyses