Question
ped Book Print ferences The operations vice-president of the Regal Bank of Canada, Kristin Wu, has been interested in investigating the efficiency of the
ped Book Print ferences The operations vice-president of the Regal Bank of Canada, Kristin Wu, 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 far to show how those costs are related to the various services provided by the bank. Wu has asked for your help in conducting an ABC 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 Windsor branch of the Regal Bank of Canada submitted the following cost data for last year. Teller wages Assistant branch manager salary Branch manager salary Total $150,000 70,000 85,000 $305,000 Virtually all of the 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 cheques. In addition to the cost data above, the employees of the Windsor 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 Teller wages Assistant branch manager salary Branch sandger salary Opening Accounts Processing Deposits and other Customer Processing Other Withdrawals Transactions Activities Totals 75% 15% 10% 100 10% 15% 25% sex 100% 20% Hexx 100x The manager of the Windsor branch of the Regal Bank of Canada has provided the following data conceming the transactions of the branch during the past year Activity Opening accounts Processing deposits and withdrawals Processing other customer transactions Total Activity at the windsor Branch 200 accounts opened 50,000 deposits and withdrawals 1,000 other customer transactions Required: 1. Using the first-stage allocation data and above tables, compute the activity rates for the ABC system. (Round your answers to 2 decimal places.) Activity Cost Pool Opening accounts Processing deposits and withdrawals Processing other customer transactions Activity Rate per account opened per deposit or withdrawal per other customer transaction
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