Brief Exercise 5-31 Calculating ABC Unit Costs Community Credit Union has collected the following information for four activities and two types of credit cards: Activity Driver Silver Premium Activity Rate Processing transactions Transactions processed 20,000 12,000 $0.20 Preparing statements Number of statements 20,000 12.000 0.85 Answering questions Number of calls 40,000 60,000 2.00 Providing ATMs ATM transactions 80,000 24,000 1.80 There are 12,500 holders of Silver cards and 50,000 holders of Premium cards. Required: Calculate the unit cost (rounded to the nearest cent) for Silver and Premium credit cards. Brief Exercise 5-32 Assigning Costs to Activities Craig Company produces electronic components for cell phone producers. The receiv- ing department at Craig has eight clerks who process incoming goods. The total cost of their salaries is $440,000. The work distribution for the activities that they perform is as follows: Percentage of Time Activity on Each Activity Unloading goods 25% Counting goods 35 Inspecting goods 40 Required: Assign the cost of labor to each of the three activities in the receiving departmen nent. Brief Exercise 5-35 Nonvalue Added Costs Evans Inc. has the following two activities: (1) Reworking products, cost: $740,000. The re- working cost of the most efficient similar-sized competitor is $200,000. (2) Purchasing parts, cost: $900,000 (45,000 purchasing hours). A benchmarking study reveals that the most efficient level for Evans would use 24,000 purchasing hours and entail a cost of $450,000. Required: Determine the nonvalue-added cost of sash activity