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
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question

Hello, I need help solving this accounting problem.

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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Accounting Equation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education