Simplifying the ABC System: TDABC

Golding Bank provided the following data about its two checking account products and their associated resources and activities:

Iotal

At practical capacity, Golding uses $28,000$ check processing hours.

Required:

Calculate the capacity cost rate for the checking account process. Round your answer to the nearest cent.

Calculate the activity rates for the four activities. Round your answers to the nearest cent.

Assuming there are $2,200$ interest$-$bearing checking accounts, calculate the cost per account using the activity rates from Requirement $1.$ Round your answers to the nearest cent.

Unit cost $

A time equation is used to assign resource costs to checking accounts. Select a time equation for the interest$-$bearing checking account product.

$0\mathrm{.}20($number of accounts$)+0\mathrm{.}10($number of statements$)+0\mathrm{.}05($number of transactions$)+0\mathrm{.}15($number of inquiries$)$

Again, assuming that there are $2,000$ interest bearing accounts, show that the resource cost per account is the same as calculated in Requirement $2.$ Round your answers to the nearest cent.

Unit Cost

$x)($

x $)/$

$1=$

cent.

$

$$ per hour

Update all the activity rates for these changes in operating conditions.

Processing accounts

per account

Issuing statements

per statement

Processing transactions

per transaction

Answering inquirles

per inquiry