Study Appendix 12, especially the ‘Summary problem for your review’ on p. 554–558. Exhibit 12.20 shows the MSABC system of the billing department. What costs would be included in the billing labour and bill-verifying labour resources? Compile a list of the cost-allocation paths from these two labour resources to the commercial accounts cost object.

Exhibit 12.20

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Occupancy Square metres Account inquiry labour 44 Labour hours Account inquiry activity cost pool Supervisors €345,155.81 allocated costs +25,000 inquiries = 413.806 per inquiry Inquiries Labour hours Correspondence activity cast pool Residential Accounts 20,000 inquiries 1,440,000 printed lines Printing machine Telecommunications Letters Printed lines Account billing activity €154,979.89 allocated costs +2,440,000 lines = €0.06352 per line Printed lines 120,000 OLLOunts Variable cost resource Minutes Billing labour Labour hours LEGEND Cast object Tillverllying labour source Paper D Commercial Accounts 5,000 inquiries 1,000,000 printed lines Labour hours Verification activity cost pool Fland-cost TOSCUO Q Billing verifying labour Rolls €93,291.17 allocated costs +20,000 accounts = €4.665 per account Accounts verified Labour hours 20,000 alLOUnts Examples of staigment paths for occupancy to residental cost object Computer --D Transactions Other resources 199 Connector Printed lines Other activities cost pool €94,073.16 allocated costs + 2,440,000 lines =€0.03855 per line Printed lines