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 4,700 holders of Classic cards and 19,900 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

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
Providing ATMs ATM transactions 48,000 14,400 1.50

There are 4,700 holders of Classic cards and 19,900 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
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