Refer to Cases 8.46 and 8.47 notwithstanding your answer so far, assume the following costs and resource drivers for the Mixing Centre:

U.B. Bright has identified the following activities that take place in the Mixing Centre, and estimates that they use the following percentage of labour time and floor space:

The only activity that makes significant use of machinery (and therefore depreciation and energy) is 'Operate mixers'.
Required:
1. Calculate the cost of each activity performed in the Mixing Centre.
2. Explain how U.B. Bright would have collected the information necessary to identify the activities and their resource driver consumption.
3. What steps can U.B. Bright take to ensure that this information is reliable?
4. Classify each activity as unit, batch, product or facility level?

Cravings for Cakes Mixing Centre: Costs and resource drivers Costs Resource drivers Percentage of labour time Floor space occupied Machine hours Percentage of labour time Kilowatt hours $45 000 8 000 10 000 Wages Building costs Depreciation Consumables 5 000 16 000 3 000 $87 000 Energy Other Percentage of labour time Total Cravings for Cakes Mixing Centre: Activities and resource drivers used Percentage of labour time 20 10 25 Activity Percentage of floor space Set up scales Weigh ingredients 5 10 Load mixers 30 Operate mixers 50 10 20 Clean mixers Move mixture to filling 10 100% 100% Total