int The operations vice president of Security Home Bank has been interested in Investigating the...

50.1K

Verified Solution

Question

Accounting

image
image
int The operations vice president of Security Home Bank has been interested in Investigating the efficiency of the bank's operations. She has been particularly concerned about the costs of handling routine transactions at the bank and would like to compare these costs at the bank's various branches. If the branches with the most efficient operations can be identified, their methods can be studied and then replicated elsewhere. While the bank maintains meticulous records of wages and other costs, there has been no attempt thus far to show how those costs are related to the various services provided by the bank. The operations vice president has asked your help in conducting an activity-based costing study of bank operations. In particulat, she would like to know the cost of opening an account the cost of processing deposits and withdrawals, and the cost of processing other customer transactions The Westfield branch of Security Home Bank has submitted the following cost data for last year: Teller vages $ 155,000 Assistant branch manager salary 64.000 Branch manager salary 85,000 Total $ 304,000 Virtually all other costs of the branch-rent, depreciation, utilities, and so on--are organization-sustaining costs that cannot be meaningfully assigned to individual customer transactions such as depositing checks In addition to the cost data above, the employees of the Westfield branch have been interviewed concerning how their time was distributed last year across the activities included in the activity based costing study. The results of those interviews appear below. Distribution of Resource consumption eros notiviti Processing Processing Other Opening Deposits and Customer Other Account withdrawal Transactions Motivation Sotale Roller wages 38 710 1000 Asistant branch manager salary 23 260 50 100 canch manager salary 08 204 The manager of the Westfield branch of Security Home Bank has provided the following data concerning the transactions of the branch during the past year 190 110 LO Activity Total Activity at the Meatfield Branch Opening accounts 210 new accounts opened Processing deposits and withdrawala 50.000 deposits and withdrawals processed Processing other customer transaction 1,100 other customer transactions processed Required: 1. Compute the activity rates for the activity-based costing system. (Round your answers to 2 decimal places.) Activity Rate Activity Cost Pool Opening accounts Processing deposits and withdrawals Processing other customee transactions por account opened por deposit or withdrawal per other customer transaction

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students