Question

eBook Show Me How Calculator Calculating ABC Unit Costs Perkins National Bank has collected the following information for four activities and two types of credit cards: Activity Driver Gold Processing transactions Transactions processed Classic 12,000 Activity Rate ($) 0.20 Preparing statements Number of statements 7,200 7,200 36,000 0.95 12,000 24,000 Answering questions Number of calls 4.00 Providing ATMs ATM transactions 48,000 14,400 1.50 There are 4,900 holders of Classic cards and 19,400 holders of the Gold cards. Required: Calculate the unit cost (rounded to the nearest cent) for Classic and Gold credit cards. Unit cost for Classic Unit cost for Gold Check My Work Previou

Answer 1

Unit cost for classic

= [(12,000 X $0.20) + (12,000 X $0.95) + (24,000 X $4) + (48,000 X $1.50)] / 4,900

= $37.10

Unit cost for gold

= [(7,200 X $0.20) + (7,200 X $0.95) + (36,000 X $4) + (14,400 X $1.50)] / 19,400

= $8.96