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NEED HELP ASAP The operations vice president of Security Home Bank has been Interested in investigating the efficiency of the bank's operations. She has been
NEED HELP ASAP
The operations vice president of Security Home Bank has been Interested in investigating the efficiency of the bank's operations. She has been particularly concerned about the costs of handling routine transactions at the bank and would like to compare these costs at the bank's 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 has been no attempt thus for 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 Teller vages Assistant branch manager salary Branch manager salary Total $ 147,000 71.000 91,000 $ 309,000 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 depositing checks. In addition to the cost data above, the employees of the Westfield 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 Across Activities Processing Processing Other Opening Deposits and Customer others Account withdrawals Transactions Activities Totals Teller wages 30 748 200 30 1001 Assistant branch manager salary 145 131 200 330 1008 Branch manager salary 38 00 239 740 1000 The not of the Westfield branch of Security Home Bank has provided the following data concerning the transactions of the Distribution of resource Consumption Across Activities Processing Proing Other Opening Deponita and Customer Other Accounta withdrawals Transactions Activities Totals Teller wages 3 740 200 30 100 Assistant branch manager salary 141 200 538 1000 Branch manager salary 38 or 234 748 1000 The manager of the Westfield branch of Security Home Bank has provided the following data concerning the transactions of the branch during the past year: 13 Nativity Total Activity at the Westfield Branch Opening account 200 new accounts opened Processing deposits and withdrawala 52,000 deposits and withdrawala procensed Processing other customer transactions 1,100 other customer transactions processed Required: 1. Compute the activity rates for the activity-based costing system. (Round your answers to 2 decimal places.) Activity Rate Activity Cost Pool Opening accounts Processing deposits and withdrawals Processing other customer transactions per account opened per deposit or withdrawal per other customer transaction Step by Step Solution
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