Required:

Calculate the consumption ratios for the four drivers.

Is there evidence of product diversity? Explain.

Cornerstone Exercise $7-30$ Activity Rates

Refer to the information for Zapato Company above. The following activity data have been

collected:

Required:

Calculate the activity rates that would be used to assign costs to each product.

OBJECTIVE $1$

CORNERSTONE $7-3$

Cornerstone Exercise $7-31$ Calculating ABC Unit Costs

Perry National Bank has collected the following information for four activities and two types of

credit cards:

There are $5,000$ holders of Classic cards and $20,000$ holders of the Gold cards.

Required:

Calculate the unit cost for Classic and Gold credit cards.

Cornerstone Exercise $7-32$ Assigning Costs to Activities

Golding produces small engines for lawnmower producers. The accounts payable department at

Golding has five clerks who process and pay supplier invoices. The total cost of their salaries is

$$275,000.$ The work distribution for the activities that they perform is as follows:

Percentage of Time on

Required:

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