5 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. 20 points Skipped The Westfield branch of Security Home Bank has submitted the following cost data for last year: eBook Teller wages Assistant branch manager salary Branch manager salary 148,000 73,000 86,000 307,000 Total Hint 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. Ask 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: Print Distribution of Resource Consumption Across Activities Processing Processing Deposits and other Customer References Opening Other withdrawals Transactions Activities Totals Accounts Teller wages Assistant branch manager salary Branch manager salary 48 748 20 28 1008 168 148 278 43 1008 48 08 23 73 100 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 Total Activity at the Westfield Branch 255 new accounts opened 49,500 deposits and withdrawals processed 900 other customer transactions processed Activity Opening accounts Processing deposits and withdrawals Processing other customer transactions Required: 1. Compute the activity rates for the activity-based costing system. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate per account opened Opening accounts Processing deposits and withdrawals per deposit or withdrawal per other customer transaction Processing other customer transactions LO 2 Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management has designed an activity-based costing system with the following activity cost pools and activity rates: 20 Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 18 per direct labor-hour 186 per order $ 258 per custom design points 424 per customer Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the following products over the last 12 months: Standard Custom Model Design Number of gliders 12 2 Number of orders 1 2 Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider 2 30.50 34.00 $1,725 $2,350 468 $ 574 The company's direct labor rate is $20 per hour. Required: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign.) Answer is complete but not entirely correct. Customer margin 80