Perkins National 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 12,000 7,200 $0.20 Preparing statements Number of statements 12,000 7,200 0.95 Answering questions Number of calls 24,000 36,000 4.00 Providing ATMs ATM transactions. 48,000 14,400 1.50 There are 7,500 holders of Classic cards and 30,000 holders of 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 $ 35.66 X 9.07 X

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Calculating ABC Unit Costs
Perkins National 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
12,000
7,200
$0.20
Preparing statements
Number of statements
12,000
7,200
0.95
Answering questions
Number of calls
24,000 36,000
4.00
ATM transactions
48,000
14,400
1.50
Providing ATMS
There are 7,500 holders of Classic cards and 30,000 holders of 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
35.66 X
9.07 X
Transcribed Image Text:> Calculating ABC Unit Costs Perkins National 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 12,000 7,200 $0.20 Preparing statements Number of statements 12,000 7,200 0.95 Answering questions Number of calls 24,000 36,000 4.00 ATM transactions 48,000 14,400 1.50 Providing ATMS There are 7,500 holders of Classic cards and 30,000 holders of 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 35.66 X 9.07 X
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