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Account Analysis The accounting department of a large limousine company is analysing the costs of its services. The cost data and level of activity for the past 16 months follow:

Account Analysis The accounting department of a large limousine company is analysing the costs of...-1

 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:

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Account Analysis The accounting department of a large limousine company is analysing the costs of...-2

Required

 a. What is the cost per unit for (1) pay checks 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 pay checks processed   •   200 customer accounts maintained   •   3 special analyses      

 
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