In this exercise, you are going to “cut and paste” costs and driver frequencies and then use this information to develop activity-based costs. T he worksheets you will need for this exercise are:

• Marketing Value Analysis

• Customer Service Value Analysis

• Repairs Value Analysis

• Management Value Analysis

• Acquisitions Value Analysis

• ABCM Driver Information

• DB 13.2 Template.

The template already has all of the categories of cost you are going to develop ABC rates for noted already. What you need to do is capture the total cost data for that attribute and then obtain the driver frequency from the ABCM Driver Information worksheet so that you can calculate your rates. Now add the frequency data to the driver description and then calculate the ABC rates.

REQUIRED:

a. Turn in your completed template worksheet along with your answer to the following question.

b. What activities are the most expensive? Just note the top two or three most costly activities.