1. Simplifying the ABC System: TDABC

   Golding Bank provided the following data about its resources and activities for its checking account process:

   Resources			Activities	Time per Unit		Activity Driver
   Supervision	$66,000		Processing accounts	0.20 hr.		No. of accounts
   Phone and supplies	82,000		Issuing statements	0.10 hr.		No. of statements
   Salaries	244,000		Processing transactions	0.05 hr.		No. of transactions
   Computer	24,000		Answering customer inquiries	0.15 hr.		No. of inquiries
   Total	416,000
   Total check processing hours	26,000
   	(practical capacity)

   Required:

   1. Calculate the capacity cost rate for the checking account process. Round your answer to the nearest cent. $fill in the blank 1 per hour

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

   Processing accounts	$fill in the blank 2 per account
   Issuing statements	$fill in the blank 3 per statement
   Processing transactions	$fill in the blank 4 per transaction
   Answering inquiries	$fill in the blank 5 per inquiry

   If the total number of statements issued was 28,000, calculate the cost of the issuing statements activity. $fill in the blank 6

   3. What if process improvements decreased the number of customer inquiries, leading to a 10 percent reduction in check processing hours and a $4,160 reduction in total resource costs? Calculate the capacity cost rate for the checking account process. Round your answers to the nearest cent.

   $fill in the blank 7 per hour

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

   Processing accounts	$fill in the blank 8 per account
   Issuing statements	$fill in the blank 9 per statement
   Processing transactions	$fill in the blank 10 per transaction
   Answering inquiries	$fill in the blank 11 per inquiry