3. What if process improvements decreased the number of customer inquiries, leading to a 10 percent reduction in checkprocessing hours and a $7,200 reduction in total resource costs? Calculate the capacity cost rate for the checking account process.Round your answers to the nearest cent.per hourUpdate all the activity rates for these changes in operating conditions.Processing accountsper accountIssuing statementsper statementProcessing transactionsper transactionAnswering inquiriesper inquiry Simplifying the ABC System: TDABCGolding Bank provided the following data about its resources and activities for its checking account process:Time per UnitResourcesActivitiesActivity DriverSupervision$68,000Processing accounts0.20 hr.No. of accountsPhone and supplies84,000Issuing statements0.10 hr.No. of statementsSalaries188,000Processing transactions0.05 hr.No. of transactionsComputer20,000Answering customer inquiries0.15 hr.No. of inquiriesTotal360,000Total check processing20,000hours(practical capacity)Required:1. Calculate the capacity cost rate for the checking account process. Round your answer to the nearest cent.per hour2. Calculate the activity rates for the four activities. Round your answers to the nearest cent.Processing accountsper accountIssuing statements$4per statementProcessing transactionsper transactionAnswering inquiriesper inquiryIf the total number of statements issued was 26,000, calculate the cost of the issuing statements activity.

Capacity means how much a unit can deliver. Capacity cost rate = Total costs / Total hours

Answered: Simplifying the ABC System: TDABC…

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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Blossom Company has recorded the following items in its financial records. Cash in bank: Checking account $50,000 Money market fund 36,000 Payroll account 26,000 Certificate of deposit (matures in 2 months) 28,000 Certificate of deposit (matures in 12 months) 33,000 Total cash in bank $173,000 Cash in plant expansion fund 143,000 Cash on hand 34,000 Highly liquid investments Petty cash 53,000 2,600 Receivables from customers 122,000 Stock investments 84,000 U.S Treasury bills 43,000 The highly liquid investments (Commercial Paper) had maturities of 3 months or less when they were purchased. The stock investments will be sold in the next 6 to 12 months. The plant expansion project will begin in 3 years. (a) What amount should Blossom report as "Cash and cash equivalents" on its balance sheet? SUPPORT
Asap Use the following information for the Exercises 12-13 below. (Algo)Skip to question [The following information applies to the questions displayed below.] Del Gato Clinic's cash account shows an $16,657 debit balance and its bank statement shows $15,640 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $1,844.The June 30 bank statement lists a $90 bank service charge.Check No. 919, listed with the canceled checks, was correctly drawn for $689 in payment of a utility bill on June 15. Del Gato Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $698.The June 30 cash receipts of $2,780 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement. Exercise 6-13 (Algo) Entries from bank reconciliation LO P3Prepare any necessary journal entries that Del Gato Clinic must record as a result of preparing the bank reconciliation. (If no entry is…
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Simplifying the ABC System: TDABC Golding Bank provided the following data about its resources and activities for its checking account process: Time per Unit Traditional Interest-Bearing Resources Activities Driver of Activity Account Account Supervision $70,000 Processing accounts No. of accounts 0.20 hr. 2,000 1,000 Phone and supplies 90,000 Issuing statements No. of statements 0.10 hr. 60,000 10,000 Salaries 275,000 Processing transactions No. of transactions 0.05 hr 160,000 120,000 Computer 25,000 Answering customer inquiries No. of inquiries 0.15 hr. 1,500 1,500 Total $460,000 At practical capacity, Golding uses 25,000 check processing hours. Required: 1. Calculate the capacity cost rate for the checking account process. Round your answers to the nearest cent. 18.4 V per hour Calculate the activity rates for the four activities. Round your answers to the nearest cent. Processing accounts 3.68 V per account Issuing statements 1.84 V per statement Processing transactions 0.92 V per…
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Presented below is information related to Sunland Company for its first month of operations. Credit Sales Cash Collections Jan. 7 Austin Co. $11,100 Jan. 17 Austin Co. $7,700 15 Diaz Co. 8,000 24 Diaz Co. 4,800 23 Noble Co. 9,800 29 Noble Co. 9,800 Identify the balances that appear in the accounts receivable subsidiary ledger and the accounts receivable balance that appears in the general ledger at the end of January. Subsidary Ledger General Led Austin Co. Diaz Co. Noble Co. Balance of Accounts Receivable %24
Required information Use the following information for the Exercises 12-13 below. (Algo) [The following information applies to the questions displayed below.] Del Gato Clinic's cash account shows an $13,511 debit balance and its bank statement shows $13,357 on deposit at the close of business on June 30. a. Outstanding checks as of June 30 total $2,312. b. The June 30 bank statement lists a $40 bank service charge. c. Check No. 919, listed with the canceled checks, was correctly drawn for $389 in payment of a utility bill on June 15. Del Gato Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $398. d. The June 30 cash receipts of $2.435 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. Exercise 6-13 (Algo) Entries from bank reconciliation LO P3 Prepare any necessary journal entries that Del Gato Clinic must record as a result of preparing the bank reconciliation. Note:…
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The following is information related to Sheridan Company for its first month of operations. Credit Sales Cash Collections Jan. 7 Austin Co. $ 10,600 Jan. 17 Austin Co. $ 7,500 15 Diaz Co. 7,700 24 Diaz Co. 4,300 23 Noble Co. 10,300 29 Noble Co. 10,300 Identify the balances that appear in the accounts receivable subsidiary ledger and the accounts receivable balance that appears in the general ledger at the end of January. Subsidiary Ledger Austin Co. Diaz Co. Noble Co. General ledger Balance of Accounts Receivable $ enter a dollar amount $ enter a dollar amount $ enter a dollar amount $ enter a dollar amount
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