Refer to problem 30.

a. Indicate the information in addition to that provided in problem 30 required to perform account analysis.

b. Now assume that Peterson’s Catering Company had the following breakdown of costs for the 16 months reported in problem 30:

Total costs of meals produced ................................................... $334,368

Total costs for delivering ............................................................ 164,400

Total costs of VIP services ......................................................... 140,352

Total costs of developing new customers.................................... 154,904

Total costs of developing new products...................................... 18,700

Total facilities-level costs (total for all 16 months)..................... 159,377

Total costs................................................................................... $972,101

What are the cost driver rates for?

(1) Meals produced,

(2) Deliveries,

(3) VIP services,

(4) New customers, and

(5) New products developed using account analysis?

c. What are the estimated costs for a month assuming the following level of cost driver volumes? (Don’t forget to include the facilities-level costs in your estimate.)

12,000.............................................................Meals produced

1,100...............................................................Deliveries

300.................................................................. VIP services

5...................................................................... New customers

2...................................................................... New products

d. Peterson’s Catering Company is considering outsourcing deliveries. Compared to your answer in requirement c., how much would the company save by outsourcing the delivery service (before considering the cost of outsourcing)?