eBook Resources Activities Simplifying the ABC System: TDABC Golding Bank provided the following data about its two checking account products and their associated resources and activities: Interest-Bearing Account Time per Unit Activity Driver Traditional Account Supervision $56,000 Processing accounts Phone and supplies 92,000 Issuing statements Salaries 432,000 Processing transactions Computer Total 20,000 Answering customer inquiries 600,000 0.20 hr. 0.10 hr. 0.05 hr. 0.15 hr. No. of accounts 2,000 1,600 No. of statements No. of transactions 60,000 10,000 160,000 120,000 No. of inquiries 1,500 1,500 At practical capacity, Golding uses 30,000 check processing hours. Required: 1. Calculate the capacity cost rate for the checking account process. Round your answer to the nearest cent. 20 per hour Calculate the activity rates for the four activities. Round your answers to the nearest cent. Processing accounts 4 per account 2 per statement Issuing statements Processing transactions Answering inquiries 1 per transaction 3 per inquiry If the total number of statements issued was 30,000, calculate the cost of the issuing statements activity. 60,000 eBook 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 $ 1 per transaction Answering inquiries 3 per inquiry If the total number of statements issued was 30,000, calculate the cost of the issuing statements activity. 60,000 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 75.45 X 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) 0.05(number of transactions) + 0.15(number of inquiries) 0.10(number of statements) 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 neare 75.45 X 4. What if process improvements decreased the number of customer inquiries, leading to a 10 percent reduction in check processing hours and a $16,800 reduction in total resource costs process. Round your answers to the nearest cent. 19.6 X per hour Update all the activity rates for these changes in operating conditions. Processing accounts Issuing statements Processing transactions Answering inquiries 3.92 X per account 1.96 X per statement 0.98 X per transaction - 2.94 X per inquiry