He upeidus vice presLUI SUCURY Home Dair tids DECISIU HVESUyduy me encienLy UI UTE Ualik Superdus. Je 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 Assistant branch manager salary Branch manager salary Total $ 145,000 72,000 93,000 $ 310,000 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 Norona notivities Processing Opening Deposits and Other Customer Teller wages Processing Transactions 180 Accounts 58 131 50 Withdrawals 671 165 Os Assistant branch manager salary Branch manager salary Other Activities 101 426 738 298 Totals 1000 1000 1008 22 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: Activity Opening accounts Processing deposits and withdrawala Processing other customer transactions Total Activity at the Westfield Branch 185 new accounts opened 53,000 deposits and withdrawals processed 1.050 other customer transaction processed 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 Assistant branch, manager Balary Branch manager salary zotal $ 145,000 72,000 93,000 $ 310,000 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 Aeross Activities Processing Processing Opening Deposits and other customer Teller wages Assistant branch manager salary Branch manager salary Accounts 58 130 58 Withdrawala 674 164 03 Transactions 189 291 224 Other Activities 108 429 735 Totala 100 1001 1005 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: Activity Opening accounts Total Activity at the Westfield Branch 185 new accounts opened 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 distributed last year across the activities included in the activity-based costing study. The results of those interviews appear be Distribution of resource Consumption across Activities Processing Processing Opening Deposits and Other Customer Withdrawals Activities Totals Teller wages 18 10% 1009 Assistant branch, manager salary 168 298 Branch manager salary 228 738 1008 Other Transactions Accounts SI 138 5+ 679 428 1008 08 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 Activity Total Activity at the Westfield Branch Opening accounts 185 new accounts opened Processing deposits and withdrawals 53.000 deposits and withdrawals processed Processing other customer transactions 1,050 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 Activity Rate Opening accounts per account opened Processing deposits and withdrawals per deposit or withdrawal Processing other customer transactions per other customer transaction
