Simplifying the ABC System: TDABC

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

At practical capacity, Golding uses $22,000$ check processing hours.

Required:

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

per hour

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

Processing accounts

$$

$|$ per account

Issuing statements

per statement

Processing transactions

per transaction

Answering inquiries

per inquiry

Assuming there are $2,500$ 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.

$$

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