Reference no: EM133132784
Question 1 - Credit 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
|
50,000
|
60,000
|
0.15
|
|
Preparing statements
|
Number of statements
|
5,000
|
20,000
|
0.90
|
|
Answering questions
|
Number of calls
|
10,000
|
25,000
|
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 Gold cards.
Required - Calculate the unit cost for Classic and Gold credit cards.
Question 2 - Norrison Automotive produces brake systems for major automobile producers. The accounts payable department at Norrison has five clerks who process and pay supplier invoices. The total cost of their salaries is $250,000. The work distribution for the activities that they perform is as follows:
|
Activity
|
Percentage of Time
on Each Activity
|
|
Comparing source documents
|
25%
|
|
Resolving discrepancies
|
45%
|
|
Processing payment
|
30%
|
Required - Assign the cost of labour to each of the three activities in the accounts payable department.
Question 3 - Norrison Automotive produces brake systems for major automobile producers. The accounts payable department at Norrison has five clerks who process and pay supplier invoices. The total cost of their salaries is $278,700. The work distribution for the activities that they perform is as follows:
|
Activity
|
Percentage of Time on Each Activity
|
|
Comparing source documents
|
23 %
|
|
Resolving discrepancies
|
40 %
|
|
Processing payment
|
37 %
|
Required - Assign the cost of labour to each of the three activities in the accounts payable department. Round your answers to the nearest dollar.
Question 4 - Kay Company takes 40,000 hours to produce 160,000 units of a product.
Required - What is the velocity? Cycle time? Round the cycle time to two decimal places.