Happy Banking Company has ten automatic teller machines (ATM) spread throughout the city maintained by the ATM Department. You have been assigned the task of determining the cost of operating each machine.Management will use the information you develop to evaluate the desirability of continuing to operate each machine and/or changing security arrangements for a particular machine.

The ATM Department consist of a total of six employees: a supervisor, a head cashier, two associate cashiers, and two maintenance personnel. The associate cashiers make between two and four daily trips to each machine to collect and replenish cash and to replenish supplies, deposit tickets and so forth.Each machine contains a small computer that automatically summarizes and reports transactions to the head cashier.The head cashier reconciles the activities of the two associate cashiers to the computerized reports. The supervisor, who does handle cash, reviews the reconciliation. When an automatic teller's computer, a customer, or a cashier reports a problem, the two maintenance employees and one cashier are dispatched immediately. The cashier removes all cash and transaction records, and the maintenance employees repair the machine.

Monthly operating costs and information on percentage of time that used in activities for a recent month follows:

Operating Cost:		Routine Trip Related Activity %	Maintenance related Activities %
Supervisor Salary	$5,000	62%	38%
Head Cashier Salary	$4,000	77%	23%
Associate Cashiers Salary ($1,800 each Assoc Cashier)	$3,600	50%	50%
Maintenance Workers Salary	$3,630	0%	100%
Cashiers Service vehicle-used for Routine Trips	$1,682	100%	0%
Maintenance service vehicle-used for maintenance activities	$1,545	0%	100%
Office rent and utilities-used equally preparing for routine and maintenance activities	$1,576	50%	50%
Machine lease, space rent, and utilities ($1,400 each macine)	$14,000
TOTAL Operating Cost for Month	$35,033

Related monthly activity information for this month follows:

Machine:	Routine Trips:	Machine Hours:
1	35	6
2	90	17
3	60	15
4	80	30
5	75	15
6	30	10
7	90	25
8	20	5
9	60	20
10	40	7
TOTAL	580	150

Additional Information follows:

1. The office is centrally located with about equal travel time to each machine.

2.Maintenance hours include travel time.

3.The cashiers' service vehicle is used exclusively for routine visits.

QUESTION: You have determined that ABC would be a more effective costing method.You have decided to split the costs into 3 activities: Routine trip, maintenance, and machine lease-space rent-utilities. Develop an analysis to determine the activity rates for each of the 3 activities:

Operating Cost:		Routine Trips	Machine Lease, Space Rent, and Utilities
Supervisor Salary
Head Cashier Salary
Associate Cashiers Salary ($1,800 each Assoc Cashier)
Maintenance Workers Salary
Cashiers Service vehicle-used for Routine Trips
Maintenance service vehicle-used for maintenance activities
Office rent and utilities-used equally preparing for routine and maintenance activities
Machine lease, space rent, and utilities ($1,400 each macine)
TOTAL per Activity =
Quantity of Activity =
Unit Activity Rates =