Abbott Business Services (ABS) generated revenue of $661,800 processing accounts payable and payroll transactions for clients. ABS reports the following information about resources in two functions: Resources used Process transactions Administer accounts Resources supplied Process transactions Administer accounts Required: Cost Driver Rate Cost Driver Volume $ 0.008 per transaction $ 525 per account 17,560,000 transactions 454 accounts $ 234,000 $ 304,000 a. Compute the cost of unused resource capacity at Abbott Business Services. b. Prepare a traditional income statement. c. Prepare an activity-based income statement. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the cost of unused resource capacity at Abbott Business Services. Unused Processing Transactions. Administering Accounts Resource Capacity

Customers as a Cost Object Morrisom National Bank has requested an analysis of checking account profitability by customer type. Customers are categorized according to the size of their account: low balances, medium balances, and high balances. The activities associated with the three different customer categories and their associated annual costs are as follows: Additional data concerning the usage of the activities by the various customers are also provided: Required: (Note: Round answers to two decimal places.) 1. Calculate a cost per account per year by dividing the total cost of processing and maintaining checking accounts by the total number of accounts. What is the average fee per month that the bank should charge to cover the costs incurred because of checking accounts? 2. Calculate a cost per account by customer category by using activity rates. 3. Currently, the bank offers free checking to all of its customers. The interest revenues average 90 per account; however, the interest revenues earned per account by category are 80, 100, and 165 for the low-, medium-, and high-balance accounts, respectively. Calculate the average profit per account (average revenue minus average cost from Requirement 1). Then calculate the profit per account by using the revenue per customer type and the unit cost per customer type calculated in Requirement 2. 4. CONCEPTUAL CONNECTION After the analysis in Requirement 3, a vice president recommended eliminating the free checking feature for low-balance customers. The bank president expressed reluctance to do so, arguing that the low-balance customers more than made up for the loss through cross-sales. He presented a survey that showed that 50% of the customers would switch banks if a checking fee were imposed. Explain how you could verify the presidents argument by using ABC.

Develop a flowchart for revenue cycle of 7-Eleven retail store containing their cash disbursement, payroll and fixed asset

Livro Company has three operating segments with the following information:In addition, corporate headquarters generates revenues of $2,000.What is the minimum amount of revenue that each of these segments must generate to be considered separately reportable?a. $2,900b. $3,200c. $3,300d. $3,400