The operations vice president of Security Home Bank has been Interested in Investigating the efficiency of the bank's operations. She has been particularly concerned about the costs of handling routine transactions at the bank and would like to compare these costs at the bank's various branches. If the branches with the most efficient operations can be identified, their methods can be studied and then replicated elsewhere. While the bank maintains meticulous records of wages and other costs, there has been no attempt thus far to show how those costs are related to the various services provided by the bank. The operations vice president has asked your help in conducting an activity-based costing study of bank operations. In particular , she would like to know the cost of opening an account the cost of processing deposits and withdrawals, and the cost of processing other customer transactions. The Westfield branch of Security Home Bank has submitted the following cost data for last year: Teller wages Aastatant branch manager salary Branch manager salary Total $ 145,000 68,000 87,000 $ 300,000 Virtually all other costs of the branch-rent, depreciation, utilities, and so on-are organization-sustaining costs that cannot be meaningfully assigned to individual customer transactions such as depositing checks. In addition to the cost data above, the employees of the Westfield branch have been interviewed concerning how their time was distributed last year across the activities included in the activity-based costing study. The results of those interviews appear below: Distribution of Resource Consumption Aerous activities Processing Processing Opening Deposits and Other Customer Other Accounts withdrawals Transactions Activities Teller wages 198 100 omistant branch manager salary 25 514 Branch manager salary 154 811 40 108 676 140 08 Totala 1000 1004 1001 The manager of the Westfield branch of Security Home Bank has provided the following data concerning the transactions of the branch during the past year: In addition to the cost data above, the employees of the Westfield branch have been interviewed concerning how their time was distributed last year across the activities included in the activity-based costing study. The results of those interviews appear below. Distribution of Renource Connumption Across Activities Processing Processing Opening Deposits and Other Cuntomer Other Account withdrawal Transactions Activities Totala Teller wages 678 100 1004 Assistant branch manager salary 100 148 250 510 1000 Branch manager salary 40 00 158 816 45 196 1005 The manager of the Westfield branch of Security Home Bonk has provided the following data concerning the transactions of the branch during the past year: Activity Total Activity at the Westfield Branch Opening accounts 255 new accounts opened Processing deposits and withdrawals 45,500 deposits and withdrawala processed Processing other customer ir transaction 1,100 other customer transactions processed Required: 1. Compute the activity rates for the activity-based costing system. (Round your answers to 2 decimal places.) Activity Cost Pool Opening accounts Processing deposits and withdrawals Processing other customer transactions Activity Rate per account opened per deposit or withdrawal per other customer transaction
