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Problem 5 Activity Costs for Spearrow Company are the following Providing automatic tellers Answering questions Preparing statements Processing transactions P 325,000.00 P 120,120.00 P 132,600.00
Problem 5 Activity Costs for Spearrow Company are the following Providing automatic tellers Answering questions Preparing statements Processing transactions P 325,000.00 P 120,120.00 P 132,600.00 P 169,000.00 The activity drivers are as follows: Number of transactions for processing transactions Number of statements for preparing statements Number of calls for answering questions Number of teller transactions for the activity of providing automatic tellers Lastly, the following data have been collected from the company: Tall Number of cards 6,500.00 Transactions processed 780,000.00 # of statements 78,000.00 # of calls 13,000.00 # of teller transactions 195,000.00 Grande 3,900.00 390,000.00 46,800.00 15,600.00 39,000.00 Venti 2,600.00 130,000.00 31,200.00 10,400.00 26,000.00 Requirement N Compute for the individual rate per activity Assign the cost per activity on the products Tall, Grande and Venti. Make a detailed statement showing cost allocated to each of the product based on the cost per activity. 3 Compute for the cost per unit using data from Req#2
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