Problem 5-61 (Static) Account Analysis (LO 5-1, 2)

The Customer Support Department at Wadsworth Supply is analyzing the costs of its services. A cost analyst has collected monthly data on the three main functions of the department and the total costs for the last year, which follow.

Month	Special Reports Completed	Customer Accounts Maintained	Transactions Processed	Customer Support Costs ($000)
1	31	2,795	85,140	$ 1,276
2	17	2,636	65,240	1,378
3	53	2,597	71,540	1,280
4	37	1,831	49,580	1,226
5	29	1,948	50,230	1,232
6	41	1,840	44,710	1,016
7	35	1,126	28,770	1,020
8	56	1,057	25,640	1,086
9	20	1,289	30,240	1,010
10	26	2,545	67,870	1,296
11	12	1,831	51,110	1,160
12	43	1,905	49.930	1,152
Totals	400	23,400	620,000	$ 14,132

The cost analyst also has identified the Customer Support Department costs for each of the three main functions. Any costs not assigned to one of the functions is considered general administration cost. The costs for the last year (in thousands) follow:

Total cost of special reports	$ 5,040
Total cost of maintaining customer accounts	3,510
Total cost of processing transactions	1,922

Required:

a-1. What is the cost per unit for special reports completed?

a-2. What is the cost per unit for customer accounts maintained?

a-3. What is the cost per unit for transactions processed?

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?

• 40 special reports
• 2,500 customer accounts maintained
• 55,000 transactions processed