Calculating ABC Unit Costs Perry National Bank has collected the following information for four activities and two types of credit cards: Activity Processing transactions Preparing statements Answering questions Providing ATMs There are 5,000 holders of Classic cards and 20,000 holders of the Gold cards. Required: Calculate the unit cost (rounded to the nearest cent) for Classic and Gold credit cards. Unit cost for Classic Unit cost for Gold Driver Transactions processed Number of statements Number of calls ATM transactions Classic Gold Activity Rate 8,000 4,800 8,000 4,800 16,000 24,000 32,000 9,600 $0.15 0.90 3.00 1.20 Assigning Costs to Activities Baker Company produces small engines for lawnmower producers. The accounts payable department at Baker has six clerks who process and pay supplier invoices. The total cost of their salaries is $320,000. The work distribution for the activities that they perform is as follows: Activity Comparing source documents Resolving discrepancies Processing payment Required: Assign the cost of labor to each of the three activities in the accounts payable department. Activity Comparing source documents Resolving discrepancies Processing payment Percentage of Time on Each Activity 15% 65 20 Cost Assignment