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plz help with the ones wrong for each problem Customers as a Cost Object Morrisom National Bank has requested an analysis of checking account profitability

plz help with the ones wrong for each problem
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Customers as a Cost Object Morrisom National Bank has requested an analysis of checking account profitability by customer type. Customers are categorized according to the size of their account: low balances, medium balances, and high balances. The activities associated with the three different customer categories and their associated annual costs are as follows: Opening and dosing accounts $300,000 issuing monthly statements 450,000 Processing transactions 3,075,000 Customer inquiries 600,000 Providing automatic teller machine (ATM) services 1,680,000 Total cost $6,105,000 Additional data concerning the usage of the activities by the various customers are also provided: Account Balance Low Medium High 22,500 4,500 3,000 Number of accounts opened/closed Number of statements issued Processing transactions Number of telephone minutes Number of ATM transactions Number of checking accounts Required: 675,000 150,000 75,000 27,000,000 3,000,000 750,000 1,500,000 900,000 600,000 2,025,000 300,000 75,000 57.000 12,000 6,000 1. Calculate a cost per account per year by dividing the total cost of processing and maintaining checking accounts by the total number of accounts, Round your answer 1. Calculate a cost per nccount per year by dividing the total cost of processing and maintaining checking accounts by the total number of accounts. Round your answer to the nearest cent. 81.4 V per account per year What is the average fee per month that the bank should charge to cover the costs incurred because of checking accounts Round your answer to the nearest cent. 6.78 per month 2. Calculate a cost per account by customer category by using activity rates. Round your answers to the nearest cent. Cost Per Account 87.37 LOW Medium 67.50 High 81.40 x 3. Currently, the bank offers free checking to all of its customers. The interest revenues average $90 per account; however, the interest revenues earned per account by category are $80, $100, and $165 for the low-, medium-, and high-balance accounts, respectively. Calculate the average profit per account (average revenue minus average cost from Requirement 1). Round your answer to the nearest cent. 8.60 per account Also calculate the promt per account by using the revenue per customer type and the unit cost per customer type calculated in Requirement 2. Round to the nearest cent, Use the minus sign to indicate a loss Low-balance customers 7.4 X per account Medium-balance customers 81.4 x per account High-balance customers B.6 X per account 4. After the analysis in Requirement 3, a vice president recommended eliminating the free checking feature for low balance customers. The bank president expressed reluctance to do so, arguing that the low-balance customers more than made up for the loss through cross sales. He presented a survey that showed that 50% of the customers would switch banks it a checking fee were imposed. Explain how you could verify the president's argument by using ABC, Predetermined Departmental Overhead Rates, Applying Overhead to Production At the beginning of the year, Hallett Company estimated the following: Cutting Department Sewing Department Total Overhead $246,200 $358,700 $604,900 Direct labor hours 31,200 109,000 140,200 Machine hours 157,200 157,200 Hallett uses departmental overhead rates. In the cutting department, overhead is applied on the basis of machine hours. In the sewing department, overhead is applied on the basis of direct labor hours. Actual data for the month of June are as follows: Cutting Department Sewing Department Total Overhead $20,660 $37,300 $57,960 Direct labor hours 2,800 8,660 11,460 Machine hours 13,610 13,610 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Required: 1. Calculate the predetermined overhead rates for the cutting and sewing departments. Round your answers to the nearest cent. Overhead rate for Cutting Department: 1.57 per machine hour Overhead rate for Sewing Departments 3.29 per direct labor hour X HI Open spreadsheet Required: 1. Calculate the predetermined overhead rates for the cutting and sewing departments. Round your answers to the nearest cent, Overhead rate for Cutting Department: $ 1.57 per machine hour Overhead rate for Sewing Department: $ 3.29 per direct labor hour 2. Calculate the overhead applied to production in each department for the month of June. Do not round Intermediate calculations. Round your answers to the nearest dollar 28,491 X Overhead applied to Cutting Department in June: 21,368 X Overhead applied to Sewing Department in June 3. By how much has each department's overhead been overapplied or underapplied? Round your answers to the nearest dallar. Cutting Department: 708 x overapplied Sewing Department: 8,809 x underapplied Todach The Work 1. Divide estimated overhead costs by the estimated activity level. 2. Multiply the predetermined overhead rate by the actual activity level 3. Compare applied and actual overhead. If applied is greater, then overhead has been overapplied. If actual is greater than overhead has been underapplied

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