Exercise 7-8 Computing and Interpreting Activity Rates ILO3N The operations vice president of First Ban of Eagle, Kristin Wu, h as be terested vestigating the efficiency of the bank s operations. She as b een particularly concerned about the e costs of andling routine transactions at the ban and would like to compare these costs at the ban various branches. If the branches with the most efficient operations can be identified, their methods can be studied and then replicated elsewhere. While the bank maintains meticulous records of wages and other costs, there as been no attempt thus far to show how those costs are related to the variou rvices provided by the ban k. Ms. Wu has asked your help in conducting an activity- based costing study of ban k operations n particular, she would lik to know the cost of opening an account, the cost of processing deposits and withdrawals. and the cost of processing other customer transactions. The Avon branch of First Bank of Eagle has submitted the following cost data for last year: 140.000 Teller wages Assistant branch manager salary 69,000 Branch manager salary 05.000 313,000 Total Virtually all of the other costs of the branch. depreciation, utilities. and so on organization-sustaining costs that cannot be meaningfully assigned to individual customer transactions such as depositing checks. n addition to the cost data above, the employees of the Avon branch have b terviewed concerning how their time was distributed last year across the activities included in the activity based costing study. The results of those interviews appear below: Distribution of Resource Consumption Across Activities Processing Processing Deposits Other Opening and Customer Other unts Withdrawals Transactions Activities Totals Teller wages 0% 17% 12% 100% Assistant branch manager salary 9% 16% 28% 47% 100% Branch manager salary 0% 0% 16% 84% 100% The manager of the Avon branch of First Bank of Eagle has provided the following data concerning the transactions of the branch during the past year: Activity Total Activity at the Avon Branch Opening accounts 210 accounts opened Processing deposits and withdrawals 48,500 deposits and withdrawals Processing other customer transactions 1.100 other customer transactions Required 1. Compute the activity rates for the activity-based costing system. (Round your answers to 2 decimal places. Omit the sign in your response.) Activity Cost Pool Activity Rate Opening accounts per account opened per deposit or withdrawal Processing deposits and withdrawals per other customer Processing other customer transactions ansaction