Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4 0 The operations vice president of Security Home Bank has been interested in investigating the efficiency of the bank's operations. She has been particularly

image text in transcribed
4 0 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 various branches of the branches with the most chcient operation can be identified their methods can be studied and then repicmed elsewhere. While the bank maintains me culous 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 the customer transactions The Westfield branch of Security Home Bank has submitted the following cost data for last year Tellet was $ 15,00 Athane mary 71.000 ranch manager IATY 1.000 Total 1315.000 Virtumly all other costs of the branch-rent depreciation, tibes, and so on-are organication Sustaining costs that cannot be meanifully assigned to individual customer transactions such as depositing check 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 topear below nistribution of our competitie reasing In other Openis Depot Customer Othe withdrawal Transaction Ketivities Totals Teller 340 17 56 1600 Anticanchage may 165 204 41 1000 Brah Ar salary 45 00 The manager of the Westfield branch of Security Home Bank has provided the following data concerning the transactions of the branch during the past your ATEVE Total Viettel Opening accounts 250 ve SOCCE opened Procesin deposite and withdrawal +1.000 deposits and withdrawale proced Processing the custot transactions 1.516 other customer transaction processed Required: 1. Compute the activity rates for the activity based costing system (Round your answers to 2 decimal places)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Comprehensive Assurance & Systems Tool

Authors: Laura R. Ingraham, Greg Jenkins

4th Edition

0134790472, 9780134790473

More Books

Students also viewed these Accounting questions

Question

Describe several uses for a position description.

Answered: 1 week ago