Data table All 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 (50\%) processing deposits and withdrawals. They also estimated that they spent about 10% of their time processing new accounts and about 25% of their time processing other transactions. The remaining 15% of their time was spent on all other banking activities. The results of the interviews are presented in the following table: Figure Data table The Cumherland hranch hae the follnwinn onct data far the lact var 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 so the Cumberland branch has just two types of costs-indirect and unallocated. Data table Data table Data table Of the 3,300 customers of the branch, only 400 are local businesses. The business-customer class generated 30 new accounts, 82,000 deposits and withdrawals, and 26,000 other transactions. The implementation of ABC at all branches of BSSB provided sufficient data for internal benchmarking. The following are the lowest activity costs among all branches implementing two-stage ABC systems: Requirements 1. Determine the allocated (indirect) cost per account for retail and commercial accounts. Use the process map as a guide. 2. Under what conditions would benchmarking between the Cumberland branch of BSSB and the other branches be inappropriate? 3. What do the results of the ABC study suggest? The Cumberland branch of Barron State Savings Bank (BSSB) is a (Click the icon to view the internal activity analysis.) retail branch in a rapidly growing residential area. It services (Click the icon to view the cost data for the last year.) individuals and local businesses. To support its services, the branch employs 14 tellers, 3 retail sales managers (RSMs), and the branch A part of the activity analysis conducted at the Cumberland managing officer. The branch services about 3,300 customers. Each of branch of Barron State Savings Bank (BSSB) was identifying the 70 branches of BSSB is implementing ABC in order to improve potential cost drivers for each major activity. The following cost profitability. BSSB's branch managing officers have been given the drivers were chosen because they were both plausible and responsibility to implement activity-based costing. The managing reliable and data were available: (Click the icon to view the cost driver data.) ABC system. The following process map depicts its two-stage ABC system. (Click the icon to view the calculation of traceable costs.) (Click the icon to view the process map.) (Click the icon to view the benchmarking data.) Read the Requirement 1. Determine the allocated (indirect) cost per account for retail and commercial accounts. Use the process map as a guide. Begin by calculating the cost per unit for each of the three main activities. First enter the formula, then calculate the cost per unit. (Round your answers to four decimal places.) Data table All 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 (50\%) processing deposits and withdrawals. They also estimated that they spent about 10% of their time processing new accounts and about 25% of their time processing other transactions. The remaining 15% of their time was spent on all other banking activities. The results of the interviews are presented in the following table: Figure Data table The Cumherland hranch hae the follnwinn onct data far the lact var 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 so the Cumberland branch has just two types of costs-indirect and unallocated. Data table Data table Data table Of the 3,300 customers of the branch, only 400 are local businesses. The business-customer class generated 30 new accounts, 82,000 deposits and withdrawals, and 26,000 other transactions. The implementation of ABC at all branches of BSSB provided sufficient data for internal benchmarking. The following are the lowest activity costs among all branches implementing two-stage ABC systems: Requirements 1. Determine the allocated (indirect) cost per account for retail and commercial accounts. Use the process map as a guide. 2. Under what conditions would benchmarking between the Cumberland branch of BSSB and the other branches be inappropriate? 3. What do the results of the ABC study suggest? The Cumberland branch of Barron State Savings Bank (BSSB) is a (Click the icon to view the internal activity analysis.) retail branch in a rapidly growing residential area. It services (Click the icon to view the cost data for the last year.) individuals and local businesses. To support its services, the branch employs 14 tellers, 3 retail sales managers (RSMs), and the branch A part of the activity analysis conducted at the Cumberland managing officer. The branch services about 3,300 customers. Each of branch of Barron State Savings Bank (BSSB) was identifying the 70 branches of BSSB is implementing ABC in order to improve potential cost drivers for each major activity. The following cost profitability. BSSB's branch managing officers have been given the drivers were chosen because they were both plausible and responsibility to implement activity-based costing. The managing reliable and data were available: (Click the icon to view the cost driver data.) ABC system. The following process map depicts its two-stage ABC system. (Click the icon to view the calculation of traceable costs.) (Click the icon to view the process map.) (Click the icon to view the benchmarking data.) Read the Requirement 1. Determine the allocated (indirect) cost per account for retail and commercial accounts. Use the process map as a guide. Begin by calculating the cost per unit for each of the three main activities. First enter the formula, then calculate the cost per unit. (Round your answers to four decimal places.)
