Countryside Bank uses activity-based costing to determine the cost of servicing customers. There are three activity pools: teller transaction processing ($2.55 per teller transaction), check processing(50.10 per canceled check), and ATM transaction processing (50.20 per ATM transaction). Rosa Bush had 5 teller transactions, 10 canceled checks, and 7 ATM transactions during the month. What is thetotal monthly activity-based cost for Rosa Bush during the month?a $32.90O b. $15.15$9.754 $24.75

Activity Rate :— It is the rate used to allocate activity cost to cost object under activity based…

Answered: Countryside Bank uses activity-based…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A quality control activity analysis indicated the following four activity costs of a hotel. Verifying credit card information $486,000 Customer service training 364,500 Discounting room rates due to poor customer service 243,000 Correcting charges to customer invoices 121,500 Total $1,215,000 Sales are $8,100,000 for the year. Prepare a cost of quality report. Round your answers to one decimal place, if necessary. Cost of Quality Report Quality Cost Percent of Quality Cost Percent of Total Quality Cost Classification Total Sales $ Prevention Appraisal Internal failure External failure Totals % 100 % % %
Adrian's Restaurant is a 66 -seat restaurant open every day for lunch and dinner. For the month of May, it plans to tum over the restaurant 1.5 times at lunch and 2.5 times at dinner. Each server can handle 22 guests at a time. Lunch shifts are typically 4 hours and dinner shifts are typically 6 hours. Servers earn $12 per hour. Calculate the cost of server labour for lunch, dinner and in total for the month of May. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Lunch Labour Cost =$ Dinner Labour Cost =$ Total Labour Cost =$
The Cycle Shoppe has decided to offer credit to its customers during the spring selling season. Sales are expected to be 330 bicycles. The average cost to the shop of a bicycle is $300. The owner knows that only 93 percent of the customers will be able to make their payments. To identify the remaining 7 percent, she is considering subscribing to a credit agency. The initial charge for this service is $540, with an additional charge of $6 per individual report. What is the amount of the net savings from subscribing to the credit agency? A. $3,790 B. $3,920 C. $4,080 D. $4,410 E. $4,950
Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment schedule for January using this data: in December through February, it purchased $22,000, $25,000, and $23,000 respectively.
Take me to the text Adrian's Restaurant is a 57-seat restaurant open every day for lunch and dinner. For the month of May, it plans to turn over the restaurant 1.5 times at lunch and 2.5 times at dinner. Each server can handle 19 guests at a time. Lunch shifts are typically 3 hours and dinner shifts are typically 5 hours. Servers earn $16 per hour. Calculate the cost of server labour for lunch, dinner and in total for the month of May. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Lunch Labour Cost = $ 240 Dinner Labour Cost = $ 640 Total Labour Cost = $ 880 Check
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Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow. Clients Revenues Staff hours Staff costs General operating costs Required: Eastside 25,000 $ 660,000 8,100 $ 99,000 Required A Required B Westside 6,250 $ 440,000 2,700 $ 198,000 a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses revenue to allocate general operating costs. b. Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center? Complete this question by entering your answers in the tabs below. Predetermined overhead rate Total 31,250 $ 1,100,000 10,800 $ 297,000 $ 660,000 Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses revenue to allocate general operating costs. % of revenue
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Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. Number of orders Units per order Sales returns: Number of returns. Total units returned. Number of sales calls Activity Sales calls Order processing Deliveries Sales returns Sales salary Colleen sells its products at $200 per unit. The firm's gross margin ratio is 25%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs: Required 1 Required 2 Jerry, Inc. Kate Co. 5 1,000 Customer unit level costs: Required: 1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the total cost for Colleen Company to service Jerry, Inc. and Kate Co. 2. Compare the profitability of these two customers. Customer batch…
Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of $25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is $1,100 per year. In addition to the salaries, Elliott spends $27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. REQUIRED: 1. Classify the resources associated with purchasing as (1) flexible or (2) committed. 2. Compute the total activity availability, and break this into activity usage and unused activity. 3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. (a) Suppose that a large special order will cause an additional 500 purchase orders. What purchasing…
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