how is the 130,000 calculated for processing transactions?

Assigning costs to products Assuming that the practical activity is equal to total activity usage by all products, the following actual data have been collected for Hemingway's credit card department. Classic Card Gold Card Platinum Card Total Number of cards 5000 3 000 2000 10 000 Transactions processed 600 000 300 000 100 000 1 000 000 Number of statements 60 000 36 000 24 000 120 000 Number of calls 10 000 12 000 8 000 30 000 Number of teller transactions 15 000 3 000 2 000 20 000 * The number of teller transactions for the cards is 10% of the total transactions from all sources. Thus, teller transactions total 20 000 10.10 x 200 000 MANAGERIAL 2 ACCOUNTING ASIA-PACIFIC EDITION Maryanne M. Mowen Don Hansen Dan L. Heitger John Sands Sophia Su Lanita Winata CENGAGE Copyright 2018 C u stralia P Limit Assigning costs to products Rate calculations: Processing transactions Preparing statements Answering questions Providing automatic tellers $130 000/1 000 000 - $0.13 per transaction $102 000/120 000 - $0.85 per statement $92 400/30 000 = $3.08 per call $250 000/200 000 = $1.25 per transaction Assigning costs to activities An example of a work distribution matrix. Percentage of Time Activity Processing transactions Preparing statements Answering questions 40% 30% 30% EXHIBIT 6.7 Work distribution matrix for Hemingway Bank's credit card department Assigning costs to products Assuming that the practical activity is equal to total activity usage by all products, the following actual data have been collected for Hemingway's credit card department. Classic Card Gold Card Platinum Card Total Number of cards 5000 3 000 2000 10 000 Transactions processed 600 000 300 000 100 000 1 000 000 Number of statements 60 000 36 000 24 000 120 000 Number of calls 10 000 12 000 8 000 30 000 Number of teller transactions 15 000 3 000 2 000 20 000 * The number of teller transactions for the cards is 10% of the total transactions from all sources. Thus, teller transactions total 20 000 10.10 x 200 000 MANAGERIAL 2 ACCOUNTING ASIA-PACIFIC EDITION Maryanne M. Mowen Don Hansen Dan L. Heitger John Sands Sophia Su Lanita Winata CENGAGE Copyright 2018 C u stralia P Limit Assigning costs to products Rate calculations: Processing transactions Preparing statements Answering questions Providing automatic tellers $130 000/1 000 000 - $0.13 per transaction $102 000/120 000 - $0.85 per statement $92 400/30 000 = $3.08 per call $250 000/200 000 = $1.25 per transaction Assigning costs to activities An example of a work distribution matrix. Percentage of Time Activity Processing transactions Preparing statements Answering questions 40% 30% 30% EXHIBIT 6.7 Work distribution matrix for Hemingway Bank's credit card department