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 salary Branch manager Salary Total $ 146,000 72,000 B7,800 $ 105,000 Accounts 4% 97 4% 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 across Activities Processing other Opening Processing Deposits Customer Other and with Transactions Activities Totals Teller wages 67% 15% 100% Assistant branch manager Salary 11X 55X Branchanager Salary 224 743 100% The manager of the Westfield branch of Security Home Bank has provided the following data canceming the transactions of the branch during the past year Activity Total Activity at the held branch Opening accounts 180 counts opened Processing deposit and withdrawals 47. deposit and with a process Processing the customer transactions 1,250 ser traction processed Required: 1. Compute the activity rates for the activity-based costing system. (Round your answers to 2 decimal places.) 14 250 100 Activity Rate Activity Cost Pool Opening account per account opened 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 $ 146,000 72,000 82.ee 5.385,000 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 activites included in the activity-based cosung study. The results of those interviews appear below. 67 222 Distribution of Resource consumption Across Activities Processing other Opening Processing Deposits Customer Other Account and withodwas Transactions Activities Totats Teller wages 4X 151 14 100 Assistant branch Manager Salary 9% 11 25% 55% 100 Branch manager: Salary 74% 100% The manager of the Westfield branch of Securny Home Bank has provided the following data concerning the transactions of the branch during the past year AKTIVITY Tot Activity at the West Bench Opening accounts 18 accounts opened Processing deposit and withdrawal 47,500 deposit and withdrawal proces Processing other customer transactions 1.250 other customer anons process 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 withdrawal Processing the customer ansactions per account opened per deposit or withdrawal per other customer transaction
