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Exercise 7-8 Computing and Interpreting Activity Rates (L07-3] The operations vice president of Security Home Bank has been interested in investigating the efficiency of the

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Exercise 7-8 Computing and Interpreting Activity Rates (L07-3] The operations vice president of Security Home Bank has been interested in investigating the efficiency of the bank's operations. She has been particularly concemed about the costs of handling routine transactions at the bank and would like to compare these costs at the bank's various branches. the branches with the most efficient operations can be identified, the methode can be studied and then replicated elsewhere. While the bank maintains meticulous records of wages and other costs, there has been no attempt thus far to show how those costs are related to the various services provided by the bank. The operations vice president has asked your help In conducting an activity-based costing study of bank operations. In particular, she would like to know the cost of opening an account the cost of processing deposits and withdrawals, and the cost of processing other customer transactions The Westfield branch of Security Home Bank has submitted the following cost data for last year T110r wages Resistant beanch manager Salary Branch manager salary $156,000 74.000 91,000 $321,000 Total Virtually all other costs of the branch-rent, depreciation, utilities, and so on-are organization sustaining costs that cannot be meaningfully assigned to Individual customer transactions such as deporting checks. In addition to the cost data above, the employees of the Westeld branch have been interviewed 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 Acces Activities Processing Processing Other Opening Deposits and Customer Accoranta withdrawala Transactions Teller wages 55 725 178 Aastatant branch manager 125 125 275 salary Branch manager 55 OE salary 228 Other Activities Totala 65 1000 495 100% 734 1005 The manager of the Westeld branch of Security Home Bank has provided the following date concerning the transactions of the branch during the past year. Activity Total Activity at the Meattield Beach Opening accounts 205 new accounts opened Processing deposits and withdrawala 46,000 deposits and withdrawala processed Processing other customer 909 other customer transactions transactions procesad Required: 1. Compute the activity rates for the activity-based coating system. (Round your answers to 2 decimal places. Activity Rata Activity Coct Pool Opening accounts Processing deposits and with Processing other customer transactions per account opened per deposit or with per other customer transaction

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