Activity-Based Costing in a Service Organization Banctronics Inc. has 10 automatic teller machines (ATMs) spread throughout the city maintained by the ATM Department. You have been assigned the task of determining the cost of operating each machine. Management will use the information you develop, along with other information pertaining to the volume and type of transactions at each machine, to evaluate the desirability of continuing to operate each machine and/or changing security arrangements for a particular machine. The ATM Department consists of a total of six employees: a supervisor, a head cashier, two associate cashiers, and two maintenance personnel. The associate cashiers make between two and four daily trips to each machine to collect and replenish cash and to replenish supplies, deposit tickets, and so forth. Each machine contains a small computer that automatically summarizes and reports transactions to the head cashier. The head cashier reconciles the activities of the two associate cashiers to the computerized reports. The supervisor, who does not handle cash, reviews the reconciliation. When an automatic teller's computer, a customer, or a cashier reports a problem. the two maintenance employees and one cashier are dispatched immediately. The cashier removes all cash and transaction records, and the maintenance employees repair the machine. Maintenance employees spend all of their time on maintenance-related activities. The associate cashiers spend approximately 25% of their time on maintenance-related activities and 75% on daily trips. The head cashier's time is divided, with 60% directly related to daily trips to each machine and 40% related to supervising cashiers on maintenance calls. The supervisor devotes 20% of the time t daily trips to each machine and 80% to the equal supervision of each employee. Cost information for a recent month follows: