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. Paychecka Processed 1,029 993 Accounting Service Costa $ 63,800 68,900 64,000 61,300 61,600 50,800 51,020 54,300 50,500 64,800 58,000 57,500 62,200 54,900 71,530 64,800 $959,950 Special Analyses 2. 4 Customer Accounts 325 Month 1. 310 302 213 222 214 131 123 1,268 1,028 984 712 762 739 3. 4. 2 7. 115 708 10 296 213 222 217 132 1,232 978 929 1,059 942 1,299 1,283 15,945 11 12 13 14 2. 15 4 300 16 315 Totala 30 3,650 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 montha) Total costs $180,100 109,600 120,000 550,250 $959,950 Required: a-1. What is the cost per unit for paychecks processed? a-2. Whet is the cost per unt for customer accounts maintained? a-3. What is the cost per unit for special analyses performed? b. Assuming the following level of cost driver vonlumes

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. Paychecka Processed 1,029 993 Accounting Service Costa $ 63,800 68,900 64,000 61,300 61,600 50,800 51,020 54,300 50,500 64,800 58,000 57,500 62,200 54,900 71,530 64,800 $959,950 Special Analyses 2. 4 Customer Accounts 325 Month 1. 310 302 213 222 214 131 123 1,268 1,028 984 712 762 739 3. 4. 2 7. 115 708 10 296 213 222 217 132 1,232 978 929 1,059 942 1,299 1,283 15,945 11 12 13 14 2. 15 4 300 16 315 Totala 30 3,650 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 montha) Total costs $180,100 109,600 120,000 550,250 $959,950 Required: a-1. What is the cost per unit for paychecks processed? a-2. Whet is the cost per unt for customer accounts maintained? a-3. What is the cost per unit for special analyses performed? b. Assuming the following level of cost driver vonlumes

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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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. Month Special Analyses CustomerAccounts PaychecksProcessed AccountingService Costs 1 2 325 1,029 $ 63,800 2 4 310 993 68,900 3 2 302 1,268 64,000 4 1 213 1,028 61,300 5 2 222 984 61,600 6 0 214 712 50,800 7 1 131 762 51,020 8 1 123 739 54,300 9 0 115 708 50,500 10 2 296 1,232 64,800 11 2 213 978 58,000 12 1 222 929 57,500 13 2 217 1,059 62,200 14 2 132 942 54,900 15 4 300 1,299 71,530 16 4 315 1,283 64,800 Totals 30 3,650 15,945 $ 959,950 In…
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 Special Analyses CustomerAccounts PaychecksProcessed AccountingService Costs 1 1 190 1,100 $ 58,800 2 1 260 1,010 61,600 3 2 270 1,170 59,200 4 2 250 920 59,100 5 3 160 1,280 60,600 6 2 170 1,180 61,900 7 1 340 830 59,000 8 4 220 1,220 61,400 9 3 150 1,210 61,300 10 1 230 1,270 60,100 11 2 220 1,130 60,200 12 2 300 930 61,200 13 3 190 1,010 59,700 14 3 290 1,120 60,700 15 4 300 910 60,500 16 2 180 980 60,200 Totals 36 3,720 17,270 $ 965,500 In addition to the above information, you learn that the accounting department had the following total…
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The accounting department of a large limousine company is analyzing the costs of its services. Need assistance with a1-a3
Provide correct solution for this general accounting question
The chief executive of Dabid's salon is interested in accumulating some information on the overhead costs incurred by the Company. You have been asked to analyze the following six months' worth of data: Month Overhead Cost No. of Appointments 867 P 48,128 April May June 45,200 624 47,120 689 July August September 50,800 974 47,460 49,920 730 901 Using the least squares regression method, give an estimate of the fixed cost for each month P34,371.72 P35,631.77 P36,804.09 O P37,545.70
Thayne Company has 30 clerks that work in its Accounts Payable Department. A study revealed the following activities and the relative time demanded by each activity: Required: Classify the four activities as value-added or non-value-added, and calculate the clerical cost of each activity. For non-value-added activities, indicate why they are non-value-added.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Using the data above, complete the following statements and schedules for the first quarter: 4. Prepare an absorption costing income statement for the quarter ending March 31. 5. Prepare a balance sheet as of March 31. Answer choices for Income Statment [rows 1, 9-15, 17]: (Accounts payable, Accounts receivable, Advertising, Buildings and equipment net, Cash, Common stock, Cost of goods sold, Depreciation, Interest expense, Note payable, Other expenses, Prepaid insurance, Rent, Retained earnings, Salaries and wages, Sales, Shipping) [Rows 3-6]: (Beginning inventory, Ending inventory, Goods available for sale, Purchases) Row 7: (Gross Loss, Gross margin) Row 16: (Net operating income, Net operating loss) Row 18: (Net income, Net loss) Answer Choices for Balance sheet (all rows) (Accounts payable, Accounts receivable, Buildings and equipment net, Cash, Common stock, Cost of goods sold, Interest expense, Inventory, Note payable, Prepaid insurance, Retained earnings)
The controller of the Blade Company wants you to estimate a cost function from the following two observations in a general ledger account called Maintenance: (Click to view the information.) Required 1. Estimate the cost function for maintenance. 2. Can the constant in the cost function be used as an estimate of fixed maintenance cost per month? Explain. Requirement 1. Estimate the cost function for maintenance. (Round your answers to the nearest cent as needed.) Maintenance costs = Maintenance costs = +( +( X X Requirement 2. Can the constant in the cost function be used as an estimate of fixed maintenance cost per month? Explain. the relevant range, not at cost levels the relevant range. If there are no months with zero The cost function in requirement 1 is an estimate of how costs behave machine-hours represented in the maintenance account, data in that account function provides the best available starting point for a straight line that approximates how a cost behaves be used to…