The operations vice president of Security Home Bank is investigating the efficiency of the bank's operations. She is 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 replicated elsewhere. While the bank maintains meticulous records of wages and other costs, there has been no attempt to show how those costs are related to the various services provided by the bank. The operations vice president has asked for 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 submitted the following cost data for last year: Teller wages Assistant branch manager salary Branch manager salary Total $ 151,000 72,000 93,000 $ 316,000 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 were 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: Teller wages Assistant branch manager salary Branch manager salary Distribution of Resource Consumption Across Activities Processing Other Opening Accounts Processing Deposits and Withdrawals Customer Transactions Other Activities Totals 4% 73% 16% 7% 100% 11% 4% 14% 0% 22% 53% 100% 17% 79% 100% The manager of the Westfield branch of Security Home Bank provided the following data concerning the branch's transactions during the past year: Activity Opening accounts Total Activity at the Westfield Branch 230 new accounts opened 53,500 deposits and withdrawals processed 1,250 other customer transactions processed Processing deposits and withdrawals Processing other customer transactions Required: 1. Compute the activity rates for the activity-based costing system. Note: Round your answers to 2 decimal places. Activity Cost Pool Activity Rate Opening accounts per account opened Processing deposits and withdrawals Processing other customer transactions per deposit or withdrawal per other customer transaction

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Chapter1: Financial Statements And Business Decisions
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The operations vice president of Security Home Bank is investigating the efficiency of the bank's operations. She is 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 replicated elsewhere. While the bank
maintains meticulous records of wages and other costs, there has been no attempt to show how those costs are related to the various
services provided by the bank. The operations vice president has asked for 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 submitted the following cost data for last year:
Teller wages
Assistant branch manager salary
Branch manager salary
Total
$ 151,000
72,000
93,000
$ 316,000
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 were 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
Opening
Accounts
Processing Deposits
and Withdrawals
Teller wages
4%
Assistant branch manager salary
11%
Branch manager salary
4%
73%
14%
0%
Processing Other
Customer
Transactions
16%
22%
17%
Other
Activities
Totals
7%
100%
53%
100%
79%
100%
The manager of the Westfield branch of Security Home Bank provided the following data concerning the branch's transactions during
the past year:
Activity
Opening accounts
Processing deposits and withdrawals
Processing other customer transactions
Total Activity at the Westfield Branch
230 new accounts opened
53,500 deposits and withdrawals processed
1,250 other customer transactions processed
Required:
1. Compute the activity rates for the activity-based costing system.
Note: Round your answers to 2 decimal places.
Activity Cost Pool
Activity Rate
Opening accounts
per account opened
Processing deposits and withdrawals
Processing other customer transactions
per deposit or withdrawal
per other customer transaction
Transcribed Image Text:The operations vice president of Security Home Bank is investigating the efficiency of the bank's operations. She is 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 replicated elsewhere. While the bank maintains meticulous records of wages and other costs, there has been no attempt to show how those costs are related to the various services provided by the bank. The operations vice president has asked for 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 submitted the following cost data for last year: Teller wages Assistant branch manager salary Branch manager salary Total $ 151,000 72,000 93,000 $ 316,000 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 were 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 Opening Accounts Processing Deposits and Withdrawals Teller wages 4% Assistant branch manager salary 11% Branch manager salary 4% 73% 14% 0% Processing Other Customer Transactions 16% 22% 17% Other Activities Totals 7% 100% 53% 100% 79% 100% The manager of the Westfield branch of Security Home Bank provided the following data concerning the branch's transactions during the past year: Activity Opening accounts Processing deposits and withdrawals Processing other customer transactions Total Activity at the Westfield Branch 230 new accounts opened 53,500 deposits and withdrawals processed 1,250 other customer transactions processed Required: 1. Compute the activity rates for the activity-based costing system. Note: Round your answers to 2 decimal places. Activity Cost Pool Activity Rate Opening accounts per account opened Processing deposits and withdrawals Processing other customer transactions per deposit or withdrawal per other customer transaction
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