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.