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.

Cornerstone Exercise