CostingStage One ) is a retail branch in a rapidly growing residential area. It services individuals and branch in a officer. The profitability. MVSB's been given the responsibility to implement activity-based costing. The managing officer at the Maple branch The Maple branch of Vermont State Savings Bank (MVSB) (RSMs), and the branch ABC in order to i To support its services the branch employs 15 tellers, 5 retail sales local branch services about 3,500 branch managing officers have s. Each of the 75 branches of MVSB is i The Maple branch has the fo Teller wages RSM salaries and benefits Managing officer salary and benefits Other bank costs Total RETAIL SALES MANAGERS $240,000 OFFICER $135,000 UNALLOCATED 55% 15% 10% PEN NEW ACCOUNTS PROCESS DEPOSITS AND WITHDRAWALS No. of posits and No. of A New Accounts Exhibit 4-18 Two-Stage ABC at the Maple Branch of BSSB The "other bank costs" include depreciation on the facility inclu activities, such as processing new accounts or p tly or indirectly related to routine bank ng deposits or withdrawals, and, thus, are unallocated. There are no costs that can t be direc be traced directly to customers so the Maple branch has just two types of costs-indirect and unallocated. All employees have beer 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 209 of their time processing new accounts and about 15% of their time processing other transactions. The remaining 10% of their ti spent on all other banking activities. The complete results of the interviews are presented in the following table: Internal Activity Analysis Process All Other Open New Deposits and Process Other Banking Accounts Withdrawals Transactions Activities Total 100% 100% Teller wages Retail sales manager salary Managing officer 15% 30% 20% 10% 10% 35% 55% 100% Determine the total cost of each of the three major activities conducted at the Maple branch of MVSB. Use Exhibit 4-18 as a guide.(Not that this represents the first stage in the two-stage ABC method.)