Chapter 7 Homeworki Saved 1 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. 10 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 152,eee 67,0e0 86.000 S 305,e00 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. Print 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 Reference the activity-based costing study. The results of those interviews appear below Distribution of Resource Consumption Across Activities Processing Deposits and Processing Other Opening Customer Other Wi awals ions ties Totals Accounts Tran Act Teller wages Assistant branch manager salary Branch manager salary 68% 18% 100% 12% 10% 26% 52% 100% 5% 0% 21% 74% 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 Activity Total Activity at the Westfield Branch Chapter 7 Homeworki Saved 1 meaningfully assigned to individual customer transactions such as depositing checks. 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 10 Distribution of Resource Consumption Across Activities Processing Deposits and Wi Processing Other Customer points Opening Other tions ies Totals Ac Tra 18 Act: Sklpped COuncs arawals Teller wages Assistant branch manager salary Branch manager salary 100% 12 % 52 % 26% 21% 10% 100% 5% 74% 100% eBook 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 Hint Activity Opening accounts Processing deposits and withdrawals Processing other customer transactions Total Activity at the Westfield Branch 220 new accounts opened 54,000 deposits and withdrawals processed 900 other customer transactions processed Print Required: 1. Compute the activity rates for the activity-based costing system. (Round your answers to 2 decimal places.) References Activity Cost Pool Activity Rate per account opened Opening accounts Processing depos its and withdrawals per deposit or withdrawal per other customer transaction Processing other customer transactions
