Account inquiry (hours)Account billing (lines)Account verification (accounts)Correspondence (letters)The above activities are carried out at two of its regional offices.Activities$78,0002,000 hours$41,00020,000 lines$16,00022,000 accounts$12,0001,400 lettersAccount inquiry (hours)Account billing (lines)Account verification (accounts)Correspondence (letters)Northeast Office180 hours16,000 lines1,400 accounts70 lettersMidwest OfficeWhat is the cost per letter for the correspondence activity? (Round your answer to the nearest cent.)300 hours7,000 lines600 accounts130 lettersOA. $6.00B. $29.29O C. $8.57OD. $0.731

Step 1: For correspondence activity which is for letters ,For 1400 letters it costs $12000. Step 2:…

Answered: Account inquiry (hours) Account billing…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter7A: Internal Controls

Section: Chapter Questions

Problem 2SEB

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Simplifying the ABC System: TDABC Golding Bank provided the following data about its resources and activities for its checking account process: Resources Activities Time per Unit Activity Driver Supervision $68,000 Processing accounts 0.20 hr. No. of accounts Phone and supplies 84,000 Issuing statements 0.10 hr. No. of statements Salaries 188,000 Processing transactions 0.05 hr. No. of transactions Computer 20,000 Answering customer inquiries 0.15 hr. No. of inquiries Total 360,000 Total check processinghours 20,000 (practical capacity) Required:
Simplifying the ABC System: TDABC Golding Bank provided the following data about its resources and activities for its checking account process: Time per Unit Resources Activities Activity Driver Supervision $68,000 Processing accounts 0.20 hr. No. of accounts Phone and supplies 84,000 Issuing statements 0.10 hr. No. of statements Salaries 188,000 Processing transactions 0.05 hr. No. of transactions Computer 20,000 Answering customer inquiries 0.15 hr. No. of inquiries Total 360,000 Total check processing 20,000 hours (practical capacity) Required: 1. Calculate the capacity cost rate for the checking account process. Round your answer to the nearest cent. per hour 2. Calculate the activity rates for the four activities. Round your answers to the nearest cent. Processing accounts per account Issuing statements $4 per statement Processing transactions per transaction Answering inquiries per inquiry If the total number of statements issued was 26,000, calculate the cost of the issuing…
Golding Bank provided the following data about its resources and activities for its checking account process: Resources Activities Time per Unit Activity Driver Supervision $58,000 Processing accounts 0.20 hr. No. of accounts Phone and supplies 82,000 Issuing statements 0.10 hr. No. of statements Salaries 220,000 Processing transactions 0.05 hr. No. of transactions Computer 24,000 Answering customer inquiries 0.15 hr. No. of inquiries Total 384,000 Total check processinghours 24,000 (practical capacity) Required: 1. Calculate the capacity cost rate for the checking account process. Round your answer to the nearest cent.$fill in the blank 1 per hour 2. Calculate the activity rates for the four activities. Round your answers to the nearest cent. Processing accounts $fill in the blank 2 per account Issuing statements $fill in the…
Simplifying the ABC System: TDABC Golding Bank provided the following data about its resources and activities for its checking account process: Time per Unit Traditional Interest-Bearing Resources Activities Driver of Activity Account Account Supervision $70,000 Processing accounts No. of accounts 0.20 hr. 2,000 1,000 Phone and supplies 90,000 Issuing statements No. of statements 0.10 hr. 60,000 10,000 Salaries 275,000 Processing transactions No. of transactions 0.05 hr. 160,000 120,000 Computer 25,000 Answering customer inquiries No. of inquiries 0.15 hr. 1,500 1,500 Total $460,000 At practical capacity, Golding uses 25,000 check processing hours. Required: 1. Calculate the capacity cost rate for the checking account process. Round your answers to the nearest cent. 18.4 V per hour Calculate the activity rates for the four activities. Round your answers to the nearest cent. Processing accounts 3.68 V per account Issuing statements 1.84V per statement Processing transactions 0.92 V per…
Simplifying the ABC System: TDABC Golding Bank provided the following data about its resources and activities for its checking account process: Time per Unit Traditional Interest-Bearing Resources Activities Driver of Activity Account Account Supervision $70,000 Processing accounts No. of accounts 0.20 hr 2,000 1,000 Phone and supplies 90,000 Issuing statements No. of statements 0.10 hr. 60,000 10,000 Salaries 275,000 Prncessing transactions No, of transactions 0.05 hr. 160,000 120,000 Computer 25.000 Answering customer inquiries No. af inquiries 0.15 hr. 1,500 1,500 Total $460,000 At practical capacity, Golding uses 25,000 check processing hours. Required: 1. Calculate the capacity cost rate for the checking account process. Round your answers to the nearest cent. 18.4 V per haur Calculate the activity rates for the four activities. Round your answers to the nearest cent. Processing accounts 3.68 V per account Issuing statements 1.84 V per statement Processing transactions 0.92 V per…
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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 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:…
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draw the system flow chart for the following narrative? Cornick, Inc. sells office products to businesses in the eastern region of the United States. Each month, the IT division at Cornick prints monthly statements and sends them to the accounts receivable (AR) department, where a clerk mails them to the customers. Cornick’s custo- mers mail their payments back to Cornick, where a clerk in AR batches the checks and sends them to the cashier. The AR clerk then uses the payment stub to enter the payments into the computer, where the AR master data are updated to record the payment
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