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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? . Assuming the following level of cost-driver volumes for a month, what are the accounting department's estimated costs of doing ousiness using the account analysis approach? 1,000 paychecks processed. 150 customer accounts maintained. 3 special analyses

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? . Assuming the following level of cost-driver volumes for a month, what are the accounting department's estimated costs of doing ousiness using the account analysis approach? 1,000 paychecks processed. 150 customer accounts maintained. 3 special analyses

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 16 months follow. Special Customer Paychecks Accounting Month Analyses Accounts Processed Service Costs 1,150 930 1,200 850 990 1,010 1,170 1,100 1,080 890 1,070 940 1,010 $ 61,500 61,800 61,500 1 3 260 2 190 3 1 290 4 300 60,400 60,900 61,300 59,700 230 330 320 200 61,800 61,300 58,000 180 10 220 61,700 59,900 60,700 61,100 59,900 11 1 220 12 310 13 220 14 160 960 15 1 250 900 16 330 1,040 60,400 Totals 32 4,010 16,290 $971,900 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) $193,851 122,706 126,720 528,623 Total conts $971,900 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? • 1,000 paychecks processed. • 150 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
Transcribed Image Text: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 Month Analyses Accounts Processed Service Costs 1,150 930 1,200 850 990 1,010 1,170 1,100 1,080 890 1,070 940 1,010 $ 61,500 61,800 61,500 1 3 260 2 190 3 1 290 4 300 60,400 60,900 61,300 59,700 230 330 320 200 61,800 61,300 58,000 180 10 220 61,700 59,900 60,700 61,100 59,900 11 1 220 12 310 13 220 14 160 960 15 1 250 900 16 330 1,040 60,400 Totals 32 4,010 16,290 $971,900 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) $193,851 122,706 126,720 528,623 Total conts $971,900 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? • 1,000 paychecks processed. • 150 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
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 Month Analyses Accounts Processed Service Costs 1,150 930 1,200 $ 61,500 61,800 3 260 190 61,500 60,400 60,900 3 1 290 4 2 300 850 5 1 230 990 4 330 1,010 61,300 59,700 1,170 1,100 1,080 890 1,070 320 61,800 61,300 200 9 180 10 220 58,000 61,700 59,900 60,700 11 1 220 12 310 940 1,010 960 13 2 220 61,100 59,900 14 1 160 15 1 250 900 16 330 1,040 60,400 Totals 32 4,010 16,290 $971,900 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) $193,851 122,706 126,720 528,623 Total costs $971,900 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? • 1,000 paychecks processed. • 150 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? • 1,000 paychecks processed. • 150 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 A Estimated cost
Transcribed Image Text: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 Month Analyses Accounts Processed Service Costs 1,150 930 1,200 $ 61,500 61,800 3 260 190 61,500 60,400 60,900 3 1 290 4 2 300 850 5 1 230 990 4 330 1,010 61,300 59,700 1,170 1,100 1,080 890 1,070 320 61,800 61,300 200 9 180 10 220 58,000 61,700 59,900 60,700 11 1 220 12 310 940 1,010 960 13 2 220 61,100 59,900 14 1 160 15 1 250 900 16 330 1,040 60,400 Totals 32 4,010 16,290 $971,900 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) $193,851 122,706 126,720 528,623 Total costs $971,900 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? • 1,000 paychecks processed. • 150 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? • 1,000 paychecks processed. • 150 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 A Estimated cost
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