The Maple Lake branch of Buffalo State Savings Bank (BSSB) is a retail branch in The Maple Lake branch has the following cost data for the last year: a rapidly growing residential area. It services individuals and local businesses. To (Click the icon to view the cost data.) support its services, the branch employs 14 tellers, 3 retail sales managers (RSMs), and the branch managing officer. The branch services about 3, 100 All employees have been interviewed as part of the ABC study. For example, customers. Each of the 70 branches of BSSB is implementing ABC in order to tellers were asked how they spent their time. Three major activities were improve profitability. BSSB's branch managing officers have been given the identified. They said that they spent most of their time (55%) processing deposits responsibility to implement activity-based costing. The managing officer at the and withdrawals. They also estimated that they spent about 20% of their time Maple Lake branch decided to implement a two-stage ABC system. The following processing new accounts and about 15% of their time processing other process map depicts its two-stage ABC system. transactions. The remaining 10% of their time was spent on all other banking activities. The complete results of the interviews are presented in the following (Click the icon to view the process map.) table: (Click the icon to view the internal activity analysis.) Read the requirement. . . . . . 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 wagesTwo-Stage ABC RETAIL OTHER TELLERS SALES MANAGING RESOURCES MANAGERS OFFICER (UNALLOCATED) $370,000 $220,000 $120,000 $400,000 T R M 0R T R M T R M 20% 15% 55% 15% 10% 15% 30% 35% OPEN NEW PROCESS PROCESS ACCOUNTS DEPOSITS AND OTHER WITHDRAWALS TRANSACTIONS No. of No. of No. of ONA New PDW Deposits and POT Transactions Accounts WithdrawalsTeller wages $ 370,000 RSM salaries and benefits 220,000 Managing officer salary and benefits 120,000 Other bank costs 400,000 Total $1, 110,000 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 Maple Lake branch has just two types of costs-indirect and unallocated.Internal Activity Analysis Process All Other Open New Deposits and Process Other Banking Accounts Withdrawals Transactions Activities Total Teller wages 20% 55% 15% 10% 100% Retail sales 15% 15% 30% 40% 100% manager salary Managing officer 0% 10% 35% 55% 100% salaryThe Maple Lake branch of Buffalo State Savings Bank (BSSB) is a retail branch in The Maple Lake branch has the following cost data for the last year: a rapidly growing residential area. It services individuals and local businesses. To g (Click the icon to view the cost data.) support its services, the branch employs 14 tellers, 3 retail sales managers (RSMs), and the branch managing ofcer. The branch services about 3,100 customers. Each of the 70 branches of BSSB is implementing ABC in order to improve protability. BSSB'S branch managing officers have been given the responsibility to implement activity-based costing. The managing ofcer at the Maple Lake branch decided to implement a two-stage ABC system. The following process map depicts its two-stage ABC system. Ewlick the icon to view the process map.) All employees have been interviewed as part of the ABC study. For example, tellers were asked how they spent their time. Three major activities were identied. They said that they spent most of their time (55%) processing deposits and withdrawals. They also estimated that they spent about 20% of their time processing new accounts and about 15% of their time processing other transactions. The remaining 10% of their time was spent on all other banking activities. The complete results of the interviews are presented in the following table: g (Click the icon to view the internal activity analysis.) Read the @uirement. Begin by determining the general formula to compute the total allocated cost. x l 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