Golding Bank provided the following data about its two checking account products and their associated resources and activities:

Resources Activities Time per Unit Activity Driver Traditional

Account Interest$-$Bearing

Account

Supervision $$52,000$ Processing accounts $0\mathrm{.}20$ hr$.$ No$.$ of accounts $2,7001,600$

Phone and supplies $88,000$ Issuing statements $0\mathrm{.}10$ hr$.$ No$.$ of statements $60,00010,000$

Salaries $158,000$ Processing transactions $0\mathrm{.}05$ hr$.$ No$.$ of transactions $160,000120,000$

Computer $22,000$ Answering customer inquiries $0\mathrm{.}15$ hr$.$ No$.$ of inquiries $1,5001,500$

Total $320,000$

At practical capacity, Golding uses $20,000$ check processing hours.

Required:

$1.$ Calculate the capacity cost rate for the checking account process. Round your answer to the nearest cent.

$fill in the blank $1$

$16$

per hour

Calculate the activity rates for the four activities. Round your answers to the nearest cent.

Processing accounts $fill in the blank $2$

$3\mathrm{.}2$

per account

Issuing statements $fill in the blank $3$

$1\mathrm{.}6$

per statement

Processing transactions $fill in the blank $4$

$0\mathrm{.}8$

per transaction

Answering inquiries $fill in the blank $5$

$2\mathrm{.}4$

per inquiry

$2.$ Assuming there are $2,700$ interest$-$bearing checking accounts, calculate the cost per account using the activity rates from Requirement $1.$ Round your answers to the nearest cent.

Unit cost $fill in the blank $6$

$3.$ A time equation is used to assign resource costs to checking accounts. Select a time equation for the interest$-$bearing checking account product.

$0\mathrm{.}20($number of accounts$)+0\mathrm{.}10($number of statements$)+0\mathrm{.}05($number of transactions$)+0\mathrm{.}15($number of inquiries$)$

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 nearest cent.

Unit Cost $=($$fill in the blank $8$

$)$ x $($fill in the blank $9$

$)/$ fill in the blank $10$

$=$ fill in the blank $11$

$4.$ What if process improvements decreased the number of customer inquiries, leading to a $10$ percent reduction in check processing hours and a $$3,200$ reduction in total resource costs? Calculate the capacity cost rate for the checking account process. Round your answers to the nearest cent.

$fill in the blank $12$

per hour

Update all the activity rates for these changes in operating conditions.

Processing accounts $fill in the blank $13$

per account

Issuing statements $fill in the blank $14$

per statement

Processing transactions $fill in the blank $15$

per transaction

Answering inquiries $fill in the blank $16$

per inquiry