costacctg13_sm_ch05

Offeringfreeservicestothesecustomers is

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Unformatted text preview: nlike direct manufacturing labor costs, the seven indirect cost pools are systemat ically linked to the activit y areas at the plant. The result is more accurate product costing. Productivit y measures can be developed that direct ly link to the management accounting system. Marketing managers can use ABC informat ion to price jo bs as well as to advise customers about how select ing different product features will affect price. 5­20 5­27 (30 min.) ABC, product­costing at banks, cross­subsidization. 1. Robinson Skerrett Revenues Spread revenue on annual basis (3% ´ ; $1,100, $800, $25,000) Monthly fee charges ($20 ´; 0, 12, 0) Total revenues Costs Deposit/withdrawal wit h teller $2.50 ´ 40; 50; 5 Deposit/withdrawal wit h ATM $0.80 ´ 10; 20; 16 Deposit/withdrawal on prearranged basis $0.50 ´ 0; 12; 60 Bank checks written $8.00 ´ 9; 3; 2 Foreign currency drafts $12.00 ´ 4; 1; 6 Inquiries $1.50 ´ 10; 18; 9 Total costs Operating inco me ( loss) Farrel Total $ 33 0 33 $ 24 240 264 $750.00 $ 807.00...
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