The University Credit Union (UCU) has engaged your services to determine the cost of its...
70.2K
Verified Solution
Link Copied!
Question
Accounting
The University Credit Union (UCU) has engaged your services to determine the cost of its various activities. The following data are available for a representative branch.
| Process Deposits | Process Checks | Balance Inquiries | Branch Visits | Total Costs | |
| Tellers | 30% | 40% | 10% | 20% | $150,000 |
| Assistant Manager | 10% | 10% | 5% | 75% | $75,000 |
| Managers | 2% | 3% | 5% | 90% | $90,000 |
The employees are all full-time. The average branch processes 60,000 deposits and 125,000 check transactions and 232,500 balance inquiries and 3,345 branch visits each year.
UCU has also collected the following information about 4 specific customers for the year:
| Process Deposits | Process Checks | Balance Inquiries | Branch Visits | |
| A | 8,000 | 15,000 | 20,000 | 10 |
| B | 2,000 | 4,000 | 24,000 | 18 |
| C | 15,000 | 20,000 | 35,000 | 20 |
| D | 25,000 | 35,000 | 50,000 | 35 |
- Calculate cost per activity to the 0.000th value:
- Compute Total Profit for customers A, B, C, and D after allocating the cost of their activities. Please use the budgeted rates for cost allocations
- Should UCU drop any of the customers A, B, C, D? Why or why not? List 2 factors
- Should they consider before dropping a customer?
- What happens to total firm profits if the number of branch visits received were to drop from 3,345 to 3,000?
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.