Question

Problem 3535 Ayu) Alluun 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 Analyses Accounts Month 150 3:40 250 28 190 Paychecks Processed 940 850 1,090 1.300 1.020 1,300 1.07e 1,280 1.680 1.179 1.250 1,010 1,160 1,290 820 350 Accounting Service Costs 58.200 60.200 58.500 58,300 61,000 59,700 61,700 60,909 58,200 58,900 58,300 58.200 60,400 59,400 60,100 61.cee 5953.600 220 270 33e 260 270 199 160 17e 900 Totals 3,960 17,530 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 $210, 360 120,384 132,90 489,316 $953,00 Required: 0-1. 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? - 1020 paychecks processed. . 180 customer accounts maintained • 2 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 Process paychecks Cost per unit 1 Required )

Answer 1

Required A
	Activity	Calculation	Cost per Unit
1	Process paychecks	132940/34	3910.00
2	Maintain customer account	120384/3960	30.40
3	Perform special analysis	210360/17530	12

Required B
Process paychecks	1020*3910	3988200
Maintain customer account	180*30.4	5472
Perform special analysis	2*12	24
Total fixed cost	489316/16	30582.25
Total cost of following month		4024278.25