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?
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