The Westfield branch of Security Home Bank submitted the following cost data for last year: Teller wages Assistant branch manager salary Branch manager salary Total Virtually all other costs of the branch-rent, depreciation, utilities, and so on-are organization-sustaining costs that cannot be meaningfully assigned to individual customer transactions such as depositing checks. In addition to the cost data above, the employees of the Westfield branch were interviewed concerning how their time was distributed last year across the activities included in the activity-based costing study. The results of those interviews appear below: Teller wages Assistant branch manager salary Branch manager salary $ 144,000 74,000 90,000 $ 308,000 Activity Opening accounts Processing deposits and withdrawals Processing other customer transactions Distribution of Resource Consumption Across Activities Processing Deposits and Withdrawals 75% 15% 0% Opening Accounts 4% 15% 4% Activity Cost Pool Opening accounts Processing deposits and withdrawals Processing other customer transactions The manager of the Westfield branch of Security Home Bank provided the following data concerning the branch's transactions during the past year: Processing Other Customer Transactions 20% 24% 15% Required: 1. Compute the activity rates for the activity-based costing system. Note: Round your answers to 2 decimal places. Total Activity at the Westfield Branch 255 new accounts opened Activity Rate 54,000 deposits and withdrawals processed 1,150 other customer transactions processed Other Activities 1% 46% 81% per account opened per deposit or withdrawal per other customer transaction Totals 100% 100% 100%
The Westfield branch of Security Home Bank submitted the following cost data for last year: Teller wages Assistant branch manager salary Branch manager salary Total Virtually all other costs of the branch-rent, depreciation, utilities, and so on-are organization-sustaining costs that cannot be meaningfully assigned to individual customer transactions such as depositing checks. In addition to the cost data above, the employees of the Westfield branch were interviewed concerning how their time was distributed last year across the activities included in the activity-based costing study. The results of those interviews appear below: Teller wages Assistant branch manager salary Branch manager salary $ 144,000 74,000 90,000 $ 308,000 Activity Opening accounts Processing deposits and withdrawals Processing other customer transactions Distribution of Resource Consumption Across Activities Processing Deposits and Withdrawals 75% 15% 0% Opening Accounts 4% 15% 4% Activity Cost Pool Opening accounts Processing deposits and withdrawals Processing other customer transactions The manager of the Westfield branch of Security Home Bank provided the following data concerning the branch's transactions during the past year: Processing Other Customer Transactions 20% 24% 15% Required: 1. Compute the activity rates for the activity-based costing system. Note: Round your answers to 2 decimal places. Total Activity at the Westfield Branch 255 new accounts opened Activity Rate 54,000 deposits and withdrawals processed 1,150 other customer transactions processed Other Activities 1% 46% 81% per account opened per deposit or withdrawal per other customer transaction Totals 100% 100% 100%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The Westfield branch of Security Home Bank submitted the following cost data for last year:
- Teller wages: $144,000
- Assistant branch manager salary: $74,000
- Branch manager salary: $90,000
- Total: $308,000
Virtually all other costs of the branch—rent, depreciation, utilities, and so on—are organization-sustaining costs that cannot be meaningfully assigned to individual customer transactions such as depositing checks.
In addition to the cost data above, the employees of the Westfield branch were interviewed concerning how their time was distributed last year across the activities included in the activity-based costing study. The results of those interviews appear below:
**Distribution of Resource Consumption Across Activities**
| | Opening Accounts | Processing Deposits and Withdrawals | Processing Other Customer Transactions | Other Activities | Totals |
|-------------------------------|------------------|------------------------------------|--------------------------------------|------------------|--------|
| **Teller wages** | 4% | 75% | 20% | 1% | 100% |
| **Assistant branch manager salary** | 15% | 15% | 24% | 46% | 100% |
| **Branch manager salary** | 4% | 0% | 15% | 81% | 100% |
The manager of the Westfield branch of Security Home Bank provided the following data concerning the branch's transactions during the past year:
| Activity | Total Activity at the Westfield Branch |
|---------------------------------------------|-----------------------------------------------|
| Opening accounts | 255 new accounts opened |
| Processing deposits and withdrawals | 54,000 deposits and withdrawals processed |
| Processing other customer transactions | 1,150 other customer transactions processed |
**Required:**
1. Compute the activity rates for the activity-based costing system.
*Note: Round your answers to 2 decimal places.*
| Activity Cost Pool | Activity Rate |
|-----------------------------------------|-------------------------------------|
| Opening accounts | per account opened |
| Processing deposits and withdrawals | per deposit or withdrawal |
| Processing other customer transactions | per other customer transaction |
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