Problem 11-23A (Algo) Context-sensitive nature of cost behavior classifications LO 11-1, 11-2 Munoz Bank's start-up division establishes new branch banks. Each branch opens with three tellers. Total teller cost per branch is $94,000 per year. The three tellers combined can process up to 85,000 customer transactions per year. If a branch does not attain a volume of at least 55.000 transactions during its first year of operations, it is closed. If the demand for services exceeds 85.000 transactions, an additional teller is hired and the branch is transferred from the start-up division to regular operations. Required a. What is the relevant range of activity for new branch banks? b. Determine the amount of teller cost in total and the average teller cost per transaction for a branch that processes 55.000, 65,000, 75,000, or 85.000 transactions. In this case (the activity base is the number of transactions for a specific branch), is the teller costa fixed or a variable cost? c. Determine the amount of teller cost in total and the average teller cost per branch for Munoz Bank, assuming that the start-up division operates 20,25,30 or 35 branches. In this case the activity base is the number of branches), is the teller cost a fixed or a variable cost? Complete this question by entering your answers in the tabs below. Required A Required B Required What is the relevant range of activity for new branch banks? (Enter the lower end of the relevant range first The relevant range is transactions Problem 11-23A (Algo) Context-sensitive nature of cost behavior classifications LO 11-1, 11-2 Munoz Bank's start-up division establishes new branch banks. Each branch opens with three teliers. Total teller cost per branch is $94.000 per yeat. The three tellers combined can process up to 85,000 customer transactions per year If a branch does not attain a volume of at least 55.000 transactions during its first year of operations, it is closed. If the demand for services exceeds 85,000 transactions, an additional teller is hired and the branch is transferred from the start-up division to regular operations. Required a. What is the relevant range of activity for new branch banks? b. Determine the amount of teller cost in total and the average teller cost per transaction for a branch that processes 55.000, 65,000 75,000, or 85 000 transactions. In this case (the activity base is the number of transactions for a specific branch), Is the teller cost a fixed or a variable cost? c. Determine the amount of teller cost in total and the average teller cost per branch for Munoz Bank, assuming that the start-up division operates 20, 25, 30 or 35 branches in this case (the activity base is the number of branches) is the teller cost a fixed or a variable cost? Complete this question by entering your answers in the tabs below. Required A Required B Required Determine the amount of teller cost in total and the average teller cost per transaction for a branch that processes 55,000 65,000, 75,000, or 85,000 transactions. In this case (the activity base is the number of transactions for a specific branch), is the teller cost a fixed or a variable cost? (Round Average per unit teller cost to 2 decimal places.) 55,000 65,000 75,000 85.000 No. of Transactions Totalteller cost Average per unit toller coat The teller cost is a Problem 11-23A (Algo) Context-sensitive nature of cost behavior classifications LO 11-1, 11-2 Munoz Bank's start-up division establishes new branch banks. Each branch opens with three tellers Total teller cost per branch is $94.000 per year. The three tellers combined can process up to 85,000 customer transactions per year. If a branch does not attain a volume of at least 55,000 transactions during its first year of operations, it is closed. If the demand for services exceeds 85.000 transactions, an additional teller is hired and the branch is transferred from the start-up division to regular operations. Required 0. What is the relevant range of activity for new branch banks? b. Determine the amount of teller cost in total and the average teller cost per transaction for a branch that processes 55,000, 65.000, 75,000. or 85,000 transactions. In this case (the activity base is the number of transactions for a specific branch), is the teller cost a fixed or a variable cost? c. Determine the amount of teller cost in total and the average teller cost per branch for Munoz Bank, assuming that the start-up division operates 20, 25, 30 or 35 branches. In this case the activity base is the number of branches), is the teller cost a fixed or a variable cost? Complete this question by entering your answers in the tabs below. Required A Required B Required Determine the amount of teller cost in total and the average teller cost per branch for Munoz Bank, assuming that the start up division operates 20, 25, 30 or 35 branches. In this case the activity base is the number of branches), Is the tetter cost a fixed or a variable cost? No. of Branches 20 30 35 Teller costs per branch Totalteller cost The taller cost is a
