The Cedar Park branch of Austin State Savings Bank (ASSB) is a retail The Cedar Park branch has the following cost data for the last year: branch in a rapidly growing residential area. It services individuals and local (Click the icon to view the cost data.) businesses. To support its services, the branch employs 14 tellers, 3 retail sales managers (RSMs), and the branch managing officer. The branch All employees have been interviewed as part of the ABC study. For services about 2,700 customers. Each of the 70 branches of ASSB is example, tellers were asked how they spent their time. Three major implementing ABC in order to improve profitability. ASSB's branch managing activities were identified. They said that they spent most of their time officers have been given the responsibility to implement activity-based (60%) processing deposits and withdrawals. They also estimated costing. The managing officer at the Cedar Park branch decided to that they spent about 10% of their time processing new accounts and implement a two-stage ABC system. The following process map depicts its about 20% of their time processing other transactions. The remaining two-stage ABC system. 10% of their time was spent on all other banking activities. The Click the icon to view the process map.) complete results of the interviews are presented in the following table: (Click the icon to view the internal activity analysis.) Read the requirement . . .Teller wages $ 310,000 RSM salaries and benets 240,000 Managing ofcer salary and benets 100,000 Other bank costs 490'000 Total $1 , 140,000 The "other bank costs" include depreciation on the facility including furniture, building, equipment, insurance, rentals of computers, contracted computer services, telecommunications, and utilities. These costs cannot be directly or indirectly related to routine bank activities, such as processing new accounts or processing deposits or withdrawals, and, thus, are unallocated. There are no costs that can be traced directly to customers so the Cedar Park branch has just two types of costsindirect and unallocated. Internal Activity Analysis Process All Other Open New Deposits and Process Other Banking Accounts Withdrawals Transactions Activities Total Teller wages 10% 60% 20% 10% 100% Retail sales 15% 20% 15% 50% 100% manager salary Managing officer 0% 5% 25% 70% 100% salaryTELLERS $3 70,000 OPEN NEW ACCOUNTS RETAIL OTHER . SALES MANAGING RESOURCES MANAGERS . OFFICER - (UNALLOCATED) . $220,000 - $120,000 I. $400,000 55% 15% 100.."6 '; 30% PROCESS _ PROCESS DEPOSITSAND ' OTHER WITHDRAWALS > TRANSACTIONS Begin by determining the general formula to compute the total allocated cost. | '| x := Allocated cost Portion of space used by the activity Portion of time consumed by the activity Total cost of resource Total managers salaries Total tellers wages Begin by determining the general formula to compute the total allocated cost. x | v |= Allocated cost Portion of space used by the activity Portion of time consumed by the activity Total cost of resource Total managers salaries Total tellers wages