3. What is the focus on understanding the cost of taking a customer's loan application. Vivian knew that it took los or unsecured loans, but did not know the cost differences, so she collected the following information potential for Second Republic. The bank manager, Vivian Caldwell is concerned about understanding and then controlling costs, and she decided to try out time-driven ABC. As a pilot, she decided t United States. Current economic conditions have kept lending rates low, which limits the revene ger to collect applicant information for a mortgage than it did for other types of loans, like aaute from a regional branch office. Average Time to Collect Applicant's Information Type of Loan 60 minutes Mortgage Auto 30 minutes Unsecured 20 minutes There are two loan application specialists, each earning $55,000 per year. Vivian determined thar fringe benefits average 30% of salary and that the office support costs for an employee (computer, office space, etc.) in that regional branch averaged $5,300 per employee. Factoring in time off fx vacations, time spent on training, and other required tasks, each of the application specialists had 1,600 hours available to collect applicant information. Required 1. Determine the cost per hour available to collect loan applicant information. 2. Determine the average TDABC cost of collecting applicant information for each of the three types of loans.
3. What is the focus on understanding the cost of taking a customer's loan application. Vivian knew that it took los or unsecured loans, but did not know the cost differences, so she collected the following information potential for Second Republic. The bank manager, Vivian Caldwell is concerned about understanding and then controlling costs, and she decided to try out time-driven ABC. As a pilot, she decided t United States. Current economic conditions have kept lending rates low, which limits the revene ger to collect applicant information for a mortgage than it did for other types of loans, like aaute from a regional branch office. Average Time to Collect Applicant's Information Type of Loan 60 minutes Mortgage Auto 30 minutes Unsecured 20 minutes There are two loan application specialists, each earning $55,000 per year. Vivian determined thar fringe benefits average 30% of salary and that the office support costs for an employee (computer, office space, etc.) in that regional branch averaged $5,300 per employee. Factoring in time off fx vacations, time spent on training, and other required tasks, each of the application specialists had 1,600 hours available to collect applicant information. Required 1. Determine the cost per hour available to collect loan applicant information. 2. Determine the average TDABC cost of collecting applicant information for each of the three types of loans.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Question 5-37
Transcribed Image Text:potential for Second Republic. The bank manager, Vivian Caldwell is concerned about understanding
and then controlling costs, and she decided to try out time-driven ABC. As a pilot, she decided to
Garier
tomer). Each of the 100 PCs buys,
units to 4,000 SCs. On average, each SC buys 125 units li TO GIG
OT one
experienced no decline in orders.
Required
1. Demonstrate how Garner arrives at the $100.50 order-filling cost per unit.
2. What would be the amount of loss (profit) per unit if Garner sells to Cheap at $700 per unia
3. What is the amount of loss (profit) per unit at the $800 selling price per unit for units sold to se
United States. Current economic conditions have kept lending rates low, which limits thes
focus on understanding the cost of taking a customer's loan application. Vivian knew that it toek
ger to collect applicant information for a mortgage than it did for other types of loans, like auto
or unsecured loans, but did not know the cost differences, so she collected the following inform
from a regional branch office.
Average Time to
Collect Applicant's Information
Type of Loan
Mortgage
60 minutes
Auto
30 minutes
Unsecured
20 minutes
There are two loan application specialists, each earning $55,000 per year. Vivian determined that
fringe benefits average 30% of salary and that the office support costs for an employee (computer,
office space, etc.) in that regional branch averaged $5,300 per employee. Factoring in time off for
vacations, time spent on training, and other required tasks, each of the application specialists had
1,600 hours available to collect applicant information.
Required
1. Determine the cost per hour available to collect loan applicant information.
2. Determine the average TDABC cost of collecting applicant information for each of the three types of
loans,
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