The operations vice-president of the Regal Bank of Canada, Kristin Wu, 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. Wu has asked for your help in conducting an ABC 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 Windsor branch of the Regal Bank of Canada submitted the following cost data for last year: Teller vages Assistant branch manager salary Branch manager salary Total $150,000 70,000 85,000 $ 305,000 Virtually all of the 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 cheques. In addition to the cost data above, the employees of the Windsor 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: Opening Accounts 0% Teller vages Assistant branch manager salary Branch manager salary Distribution of Resource Consumption across Activities Processing Deposits and Processing Other Customer Other Withdrawals Transactions Activities Totals 75% 15% 10% 100% 15% 25% 50% 100% 0% 20% 80% 10% 0% 100% The manager of the Windsor branch of the Regal Bank of Canada has provided the following data concerning the transactions of the branch during the past year: Activity Opening accounts Processing deposits and withdrawals Processing other customer transactions Total Activity at the Windsor Branch 200 accounts opened 50,000 deposits and withdrawals 1,000 other customer transactions Required: 1. Using the first-stage allocation data and above tables, compute the activity rates for the ABC 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 Roll Board Inc. manufactures several models of high-quality skateboards. The company's ABC system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Supporting direct labour Batch processing Order processing Customer service Activity Measure Number of direct labour-hours Number of batches Number of orders Number of customers Activity Rate $ 6 per direct labour-hour $45 per batch $85 per order $72 per customer The company just completed a single order from SkateCo for 1,200 entry-level skateboards. The order was produced in 12 batches. Each skateboard required 1.5 direct labour-hours. The selling price was $175 per skateboard, the direct materials cost was $68.50 per skateboard, and the direct labour cost was $20 per direct labour-hour. This was the only order from SkateCo for the year. Required: Prepare a report showing the customer margin on sales to SkateCo for the year. Sales Costs Direct materials Direct labour Supporting direct labour Batch processing Order processing Customer service overhead Customer margin