04 (25 Marks) 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 particular, 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 wages.. 165000 Assistant branch manager salary. 80000 Branch manager salary 85000 330000 Total.. Virtually all other costs of the branch-rent, depreciation, utilities, and so onare organizationsustaining 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 Across / Processing Processing Other Opening Accounts Deposits a Customer Other Withdraw. Transaction: Activities Total Teller wages 5% 65% 20% 10% 100% Assistant branch mana 15% 5% 30% 50% 100% Branch manager salary 5% 0% 10% 85% 100% Req 01: Prepare the first-stage allocation for the activity-based costing study. 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: Activity Opening accounts Processing deposits and withdrawal: Processing other customer transacti Total Activity at the Westfield Branch 550 New accounts opened 100000 Deposits and withdrawals processed 5000 Other customer transactions processed Req 01: Prepare the first-stage allocation for the activity-based costing study. 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: Activity Opening accounts Processing deposits and withdrawal: Processing other customer transacti Total Activity at the Westfield Branch 550 New accounts opened 100000 Deposits and withdrawals processed 5000 Other customer transactions processed The lowest costs reported by other branches for these activities are displayed below: Activity Opening accounts Processing deposits and withdrawal: Processing other customer transacti Lowest Cost among All Security Home Bank Branches 26.75 Per new account 1.24 Per deposit or withdrawal 11.86 Per other cistomer transaction Req 02: Using the first-stage allocation from the above data, compute the activity rates for the activity-based costing system. Round all computations to the nearest whole cent. Req 03: What do these results suggest to you concerning operations at the Westfield branch