Consumption Rate Allocated Cost Total Cost Cost Activity Open New Accounts Resource Tellers Retail Sales Managers Tellers Process Deposits and Withdrawals Retail Sales Managers Managing Officer Tellers Process Other Transactions Retail Sales Managers Managing Officer Problem Page Points Comments 4-42 163 25 For your convenience, fill in the blanks in the table on the following page. Two-Stage Activity-Based Costing-Stage Ong The Maple Lake branch of Buffalo State Savings Bank (BSSB) is a retail branch in a rapidly growing residential area. It services individuals and local businesses. To support its services, the branch employs 14 tellers, 3 retail sales managers (RSMS), and the branch managing officer. The branch services about 3,100 customers. Each of the 70 branches of BSSB is implementing ABC in order to improve profitability. BSSB's branch managing officers have been given the responsibility to implement activity-based costing. The managing officer at the Maple Lake branch decided to implement a two-stage ABC System, Exhibit 4-18 depicts its two-stage ABC system. The Maple Lake branch has the following cost data for the last year Teller wages $ 370,000 RSM salaries and benefits 220,000 Managing officer swary and benefits 120,000 Other bank costs 1100.000 $1,110 000 DOON DOO NES Exhibit 4-18 Two-Stage ADC at the Maple Lake Branch of BSSB The other bank costs include depreciation on the facility including furniture, building, equipment, insurance, rentals of computers, contracted computer services, telecommunications, and utilities. These costs cannot be directly or indirectly related to routine bank activities, such as processing new accounts or processing deposits or withdrawals, and thus, are unallocated. There are no costs that can be traced directly to customers sa the Maple Lake branch has just two types of costs indirect and unallocated AH employees have been interviewed as part of the ABC study. For example, tellers were asked how they spent their time. Three major activities were identified. They said that they spent most of their time (55%) processing deposits and withdrawals. They also estimated that they spent about 20% of their time processing new accounts and about 15% of their time processing other transactions. The remaining 10% of their time was spent on all other banking activities. The complete results of the interviews are presented in the following tables Internal Activity Analysis Open Process Process All Other Total New Deposits Other Banking Accountsand Transactions Activities Withdrawals Teller 20% 66% 15% 10% 100% 15% 15% 30% 40% 100% manager Managing 0% 10% 35% 55% 100% salary Determine the total cost of each of the three major activities conducted at the Maple Lake branch of BSS8. Use Exhibit 4- 18 as a guide. (Note that this represents the first stage in the two-stage ABC method.) Consumption Rate Allocated Cost Total Cost Cost Activity Open New Accounts Resource Tellers Retail Sales Managers Tellers Process Deposits and Withdrawals Retail Sales Managers Managing Officer Tellers Process Other Transactions Retail Sales Managers Managing Officer Problem Page Points Comments 4-42 163 25 For your convenience, fill in the blanks in the table on the following page. Two-Stage Activity-Based Costing-Stage Ong The Maple Lake branch of Buffalo State Savings Bank (BSSB) is a retail branch in a rapidly growing residential area. It services individuals and local businesses. To support its services, the branch employs 14 tellers, 3 retail sales managers (RSMS), and the branch managing officer. The branch services about 3,100 customers. Each of the 70 branches of BSSB is implementing ABC in order to improve profitability. BSSB's branch managing officers have been given the responsibility to implement activity-based costing. The managing officer at the Maple Lake branch decided to implement a two-stage ABC System, Exhibit 4-18 depicts its two-stage ABC system. The Maple Lake branch has the following cost data for the last year Teller wages $ 370,000 RSM salaries and benefits 220,000 Managing officer swary and benefits 120,000 Other bank costs 1100.000 $1,110 000 DOON DOO NES Exhibit 4-18 Two-Stage ADC at the Maple Lake Branch of BSSB The other bank costs include depreciation on the facility including furniture, building, equipment, insurance, rentals of computers, contracted computer services, telecommunications, and utilities. These costs cannot be directly or indirectly related to routine bank activities, such as processing new accounts or processing deposits or withdrawals, and thus, are unallocated. There are no costs that can be traced directly to customers sa the Maple Lake branch has just two types of costs indirect and unallocated AH employees have been interviewed as part of the ABC study. For example, tellers were asked how they spent their time. Three major activities were identified. They said that they spent most of their time (55%) processing deposits and withdrawals. They also estimated that they spent about 20% of their time processing new accounts and about 15% of their time processing other transactions. The remaining 10% of their time was spent on all other banking activities. The complete results of the interviews are presented in the following tables Internal Activity Analysis Open Process Process All Other Total New Deposits Other Banking Accountsand Transactions Activities Withdrawals Teller 20% 66% 15% 10% 100% 15% 15% 30% 40% 100% manager Managing 0% 10% 35% 55% 100% salary Determine the total cost of each of the three major activities conducted at the Maple Lake branch of BSS8. Use Exhibit 4- 18 as a guide. (Note that this represents the first stage in the two-stage ABC method.)