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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 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 handang routine transactions at the bank and would like to compare these costs at the bank's various branches. If the branches with the most officient operations can be identified their methods can be studied and then replicated elsewhere. While the bank maintains moticulous records of wishes 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 Wesllield branch of Security Home Bank has submitted the following cost data for last year Teller wages $147,000 Assistant branch manager salary 75000 Branch manager salary 93000 Total 5315.000 Virtually all other costs of the branch-rent, depreciation, ties, 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 Consumphion Across Activities Opening Processing Deposits Processing other Teller wages Accounts and withdrawals Customer Transactions Other Activities Totals 4% 69% Assistant branch manager salary 1695 11% 109 100% 18% 2246 Branch manager salary 50% 100% 4% 0% 23 73% 100% The manager of the Westfield branch of Security Home Bank has provided the following data concerning the transactions of the branch duning the past year Activity Total Activity at the Westfield Branch Opening accounts 2015 new accounts opened Processing deposits and withdrawals 53000 deposits and withdrawals processed Processing other customer transactions 900 other customer transactions processed Required: 1 Compute the activity rates for the activity based costing system (Round your answers to 2 decimal places.) Activity Rate Activity Cost Pool Opening accounts Processing deposits and withdrawals Processing other customer transactions per account opened per deposit or withdrawal por other customer transaction A
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