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 Virtually all other costs of the branch-rent, depreciation, utilities, and so on-are 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 Across Activities The manager of the Westfield branch of Security Home Bank has provided the following data concening the transactions of the branch during the past year 2.000 The lowest costs reported by other branches for these activities are displayed below Cost among All Seourity Home Bank Activity Required: 1. Compute the activity rates for the activity-based costing system. (Round your answers to 2 decimal places.) 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. Th 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 f last year: S 141000 sistant branch manager salany 3 296,000 Virtually all other costs of the branch-rent, depreciation, utilities, and so on-are organization sustaining costs that cannot be meaningfully assigned to individual custom transactions such as depositing checks. In addition to the cost data above, the employees of the Westfield branch have beern 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 Across Activities Pocessing Processing Opening manager salary 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 Opening aos The lowest costs reported by other branches for these activities are displayed below Lowest Cost among All Security Home Bank Branches Activity 6403 per new acount 1.99 per deposit or withdrawa Required 1. Compute the activity rates for the activity-based costing system. (Round your answers to 2 decimal places.)
