Paychecks processed-customer accounts maintained

Question

Account Analysis:

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	Customer Accounts	Paychecks Processed	Accounting Service Costs
1		..............................		2	325	1029	$           63,800.00
2		..............................		4	310	993	68,900.00
3		..............................		2	302	1268	64,000.00
4		..............................		1	213	1028	61,300.00
5		..............................		2	222	984	61,600.00
6		..............................		0	214	712	50,800.00
7		..............................		1	131	762	51,020.00
8		..............................		1	123	739	54,300.00
9		..............................		0	115	708	50,500.00
10		..............................		2	296	1232	64,800.00
11		..............................		2	213	978	58,000.00
12		..............................		1	222	929	57,500.00
13		..............................		2	217	1059	62,200.00
14		..............................		2	132	942	54,900.00
15		..............................		4	300	1299	71,530.00
16		..............................		4	315	1283	64,800.00
Totals		..............................		30	3650	15945	$         959,950.00

In addition to that 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						$180,100.00
Total cost of maintaining customer accounts						109,600.00
Total cost of performing special analyses						120,000.00
Total fixed cost (total for 16 months)						550,250.00
Total cost						$959,950.00

Required:

A. What is the cost per unit for (1) paychecks 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?

a. 1,000 paychecks processed
b. 200 customer accounts maintained
c. 3 special analyses