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can someone solve this PLS Golding Bank provided the following data about its two checking account products and their associated resources and activities: Traditional Interest-Bearing
can someone solve this PLS
Golding Bank provided the following data about its two checking account products and their associated resources and activities: Traditional Interest-Bearing Account Account Resources Activities Time per Unit Activity Driver Supervision $54,000 Processing accounts 0.20 hr. No. of accounts 2,000 2,000 Phone and supplies 84,000 Issuing statements 0.10 hr. No. of statements 60,000 10,000 Salaries 232,000 Processing transactions 0.05 hr. No. of transactions 160,000 120,000 Computer 26,000 Answering customer inquiries 0.15 hr. No. of inquiries 1,500 1,500 Total 396,000 At practical capacity, Golding uses 22,000 check processing hours. Required: 1. Calculate the capacity cost rate for the checking account process. Round your answer to the nearest cent. per hour Calculate the activity rates for the four activities. Round your answers to the nearest cent. Processing accounts per account Issuing statements per statement Processing transactions per transaction Calculate the activity rates for the four activities. Round your answers to the nearest cent. Processing accounts per account Issuing statements per statement Processing transactions $ per transaction Answering inquiries per inquiry If the total number of statements issued was 26,000, calculate the cost of the issuing statements activity. 2. Assuming there are 2,000 interest-bearing checking accounts, calculate the cost per account using the activity rates from Requirement 1. Round your answers to the nearest cent. Unit cost 3. A time equation is used to assign resource costs to checking accounts. Select a time equation for the interest-bearing checking account product. 0.20(number of accounts) + 0.10(number of statements) + 0.05(number of transactions) + 0.15(number of inquiries) Again, assuming that there are 2,000 interest bearing accounts, show that the resource cost per account is the same as calculated in Requirement 2. Round your answers to the nearest cent. 4. What if process improvements decreased the number of customer inquiries, leading to a 10 percent reduction in check processing hours and a $7,920 reduction in total resource costs? Calculate the capacity cost rate for the checking account process. Round your answers to the nearest cent. Der hour 3. A time equation is used to assign resource costs to checking accounts. Select a time equation for the interest-bearing checking account product. 0.20(number of accounts) + 0.10(number of statements) + 0.05(number of transactions) + 0.15(number of inquiries Again, assuming that there are 2,000 interest bearing accounts, show that the resource cost per account is the same as calculated in Requirement 2. Round your answers to the nearest cent. 4. What if process improvements decreased the number of customer inquiries, leading to a 10 percent reduction in check processing hours and a $7,920 reduction in total resource costs? Calculate the capacity cost rate for the checking account process. Round your answers to the nearest cent. per hour Update all the activity rates for these changes in operating conditions. Processing accounts per account Issuing statements per statement Processing transactions per transaction Answering inquiries per inquiry Gomez, Inc., costs products using a normal costing system. The following data are available for last year: Budgeted: Overhead $331,700 Machine hours 87,000 10,700 Direct labor hours Actual: Overhead Machine hours Direct labor hours $331,300 85,300 10,450 $656,050 140,000 Prime cost Number of units Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? $ per direct labor hour 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? per direct labor hour 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? Underapplied overhead 4. What was the total cost per unit produced? (Carry your answer to four significant digits.) per unitStep by Step Solution
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