Bank of America-Banking, C X infile.php/328956/mod-resource/content/4/Test%202%20Problem %2001.pdf The Owl National Bank is analyzing its existing cost system for services so that it can determine the true cost of its services for pricing purposes. The bank's controller has been researching the use of activity based costing for all operations, but specifically for the teller operations. After performing an analysis of what tellers do for customers on a recurring basis, he has identified five different activities that a teller may perform for a customer, with the related information for those activities for a normal month, provided in the table attached. Currently, the bank is using the number ofteller hours as the basis for costing a service. On average, bank records 450 hours per month for tellers. In conjunction with this, the bank is considering the creation of a brand new type of checking account for senior citizens. It has been estimated that the following volume of activity will occur on average for these accounts. OWL NATIONAL BANK ESTIMATES OF ACTIVITIES FOR NEW SENIOR CITIZEN CHECKING ACCOUNT Average Monthly Volume Average Total Teller Time Used Deposit Transactions Withdrawal Transactions Customer Questions Number of Cashier's Checks, Money Orders, etc., Sold 2.5 5.5 3.0 1.0 5 minutes 12 minutes 4 minutes 4 minutes The bank wants to set a price that earns a 25% markup on its cost