Question

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 Phone and supplies $70,000 90,000 Processing accounts Issuing statements 0.20 hr. No. of accounts 0.10 hr No. of statements Salaries 275,000 Processing transactions 0.05 hr. No. of transactions Computer 25,000 Answering customer inquiries 0.15 hr. No. of inquiries Total $460,000 Total check processing hours 25,000 (practical capacity) Required: 1. Calculate the capacity cost rate for the checking account process. Round your answers 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 Check My Work

Answer 1

I per hour (Answer) © Capacity cost rade Total mesources Total check processing hours $ 460,000 17 85000 11 are as per accound $10.92 dreanaelion #/18.4 per hours (Answer © Activities rater for the four activities follows: Preccessing acounde : (0.20 X 918.4). (0.20 X $18.4) < $13.68] per Powing statements : (0.10 P 18.4) {[1.84 per sfatement Processing Imaramelion - (0.05X818.4) per Answering inquiries -(0.15 XP 18.4) #2.76 per inquirties Issuing statements activity : Cost of the issuing statements activity ($ 1.84 x 20,600 ) $ 136,800] (Answer) Todal Todal cheek processing hours ($ 460,000 - $10,000) Tasovo - (25000 x 10 -1)] п resources 3 Capacity cost rate $ 450,000 22500 $ 20 17

а Acfivily rates for these changes in operating conditione Processing accounts -10-208 920) 4 per account Isving statements : (0.10X9.20) Paneving transactions » (0.06x9 20 ) transactions Answening inquiries : (0. 15 X $ 20 ). f ནི $11 1 pen statement per 3 per inquiry