CALCULATING ABC UNIT COSTS
Morrison Bank has collected the following information for four activities and two types of credit cards:
|
Activity
|
Driver
|
Classic
|
Gold
|
Activity Rate ($)
|
|
Processing transactions
|
Transactions
|
|
|
|
|
|
processed
|
5,000
|
3,000
|
0.15
|
|
Preparing statements
|
Number of
|
|
|
|
|
|
statements
|
5,000
|
3,000
|
0.90
|
|
Answering questions
|
Number of calls
|
10,000
|
15,000
|
3.00
|
|
Providing ATMs
|
ATM transactions
|
20,000
|
6,000
|
1.20
|
There are 5,000 holders of Classic cards and 20,000 holders of the Gold cards.
Required:
Calculate the unit cost for Classic and Gold credit cards.