Question
ABC Bank had the following activities, traceable costs, and physical flow of driver units: Traceable Physical flow of Activities Costs Driver Units Open new accounts
ABC Bank had the following activities, traceable costs, and physical flow of driver units:
|
| Traceable | Physical flow of |
| Activities | Costs | Driver Units |
|
|
|
|
| Open new accounts | $50,000 | 2,000 accounts |
| Process deposits | 40,000 | 100,000 deposits |
| Process withdrawals | 30,000 | 100,000 withdrawals |
| Process loan applications | 30,000 | 200 applications |
The above activities are used by the Apple Branch and the Orange Branch:
|
| Apple Branch | Orange Branch |
|
|
|
|
| New accounts | 100 | 50 |
| Deposits | 20,000 | 10,000 |
| Withdrawals | 10,000 | 20,000 |
| Loan applications | 100 | 200 |
29. What is ABC Bank's cost per driver unit for the loan application activity?
a. | $25.00 | |
b. | $0.40 | |
c. | $150.00 | |
d. | $0.30 |
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