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Exercise 10-32 (Algo) Activity-Based Costing of Customers (LO 10-3, 4) Northwestern Bank (NQ) offers only checking accounts, Customers can write checks and use a network
Exercise 10-32 (Algo) Activity-Based Costing of Customers (LO 10-3, 4) Northwestern Bank (NQ) offers only checking accounts, Customers can write checks and use a network of automoted telier machines. NB eams revenue by investing the money deposited; currently, it averages 4.1 percent annually on its investments of those deposits. To compete whit larger banks, NB poys depositors 0.3 percent on all deposits. A recent study classified the bank's annual operating costs into four activities. Data on two representative customers follow: Required: a. Compute the operating profit for Northwestern Bank. b. Compute the profit from Emily and Jacob, assuming that customer costs are based only on deposits. Interest costs =0.3 percent of deposits; operating costs are 3.2 pereent (=$18,176,960/$568,030,000) of deposits. c. Compute the profit from Emily and Jocob, assuming that customer costs are computed using the information in the activity-based costing analysis. Complete this question by entering your answers in the tabs below. Data on two representative customers follow: Required: a. Compute the operating profit for Northwestern Bank. b. Compute the profit from Emily and Jacob, assuming that customer costs are based only on deposits. Interest costs =0.3 percent of deposits; operating costs are 3.2 percent (=$18,176,960/$568,030,000) of deposits. c. Compute the profit from Emily and Jacob, assuming that customer costs are computed using the information in the activity-based costing analysis. Complete this question by entering your answers in the tabs below. Compute the operding profit for Northwestern Bank. Data on two representative customers follow: Required: a. Compute the operating profit for Northwestern Bank. b. Compute the profit from Emily and Jacob, assuming that customer costs are based only on deposits. Interest costs =0.3 deposits; operating costs are 3.2 percent (=$18,176,960/$568,030,000) of deposits. c. Compute the profit from Emily and Jacob, assuming that customer costs are computed using the information in the activ costing analysis. Complete this question by entering your answers in the tabs below. Compute the profit from]Emily and Jacob, assuming that customer costs are based only on deposits. Interest costs =0.3 percent of deposits; operating costs are 3.2 percent (=$18,176,960/$568,030,000) of deposits. Compute the operating profit for Northwestern Bank. Compute the profit from Emily and Jacob, assuming thet customer costs are based only on deposits. Interest costs =0.3 percent of deposits; operating costs are 3.2 percent (=$18,376,960/$568,030,000) of deposits. . Compute the profit from Emily and Jacob, assuming that customer costs are computed using the information in the activity-based costing analysis. Complete this question by entering your answers in the tabs below. Compute the profit from Emily and Jacob, assuming that customer costs are computed using the information in the activitybased costing analysis. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Loss amounts should be indicated by a minus sign
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