Calculate the unit cost for classic and gold credit cards

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Reference no: EM13938987

CALCULATING ABC UNIT COSTS

Morrison 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	5,000	3,000	0.15
Preparing statements	Number of
	statements	5,000	3,000	0.90
Answering questions	Number of calls	10,000	15,000	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 the Gold cards.

Required:

Calculate the unit cost for Classic and Gold credit cards.

Reference no: EM13938987

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