QUESTION 4:

Credit 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	50,000		60,000		0.15
Preparing statements	Number of statements	5,000		20,000		0.90
Answering questions	Number of calls	10,000		25,000		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 Gold cards.

Required:

Calculate the unit cost for Classic and Gold credit cards. Round your answers to the nearest cent.

Unit cost for Classic	$_____________
Unit cost for Gold	$_____________

QUESTION 5:

Norrison Automotive produces brake systems for major automobile producers. The accounts payable department at Norrison has five clerks who process and pay supplier invoices. The total cost of their salaries is $250,000. The work distribution for the activities that they perform is as follows:

Activity	Percentage of Time on Each Activity
Comparing source documents	25%
Resolving discrepancies	45%
Processing payment	30%

Required:

Assign the cost of labour to each of the three activities in the accounts payable department.

Activity	Cost Assignment
Comparing source documents	$__________
Resolving discrepancies	$__________
Processing payment	$__________

QUESTION 6:

Norrison Automotive produces brake systems for major automobile producers. The accounts payable department at Norrison has five clerks who process and pay supplier invoices. The total cost of their salaries is $278,700. The work distribution for the activities that they perform is as follows:

Activity	Percentage of Time on Each Activity
Comparing source documents	23 %
Resolving discrepancies	40 %
Processing payment	37 %

Required:

Assign the cost of labour to each of the three activities in the accounts payable department. Round your answers to the nearest dollar.

Activity	Cost Assignment
Comparing source documents	$_________________
Resolving discrepancies	$_________________
Processing payment	$_________________

QUESTION 7:

Kay Company takes 40,000 hours to produce 160,000 units of a product.

Required:

What is the velocity? Cycle time? Round the cycle time to two decimal places.

Velocity	_______________	units per hour
Cycle time	_______________	hour(s)