Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Textbook Question
Chapter 4, Problem 7CE
Golding Bank provided the following data about its resources and activities for its checking account process:
Required:
- 1. Calculate the capacity cost rate for the checking account process.
- 2. Calculate the activity rates for the four activities. If the total number of statements issued was 20,000, calculate the cost of the issuing statements activity.
- 3. What if process improvements decreased the number of customer inquiries, leading to a 10 percent reduction in check processing hours and a $10,000 reduction in total resource costs? Update all the activity rates for these changes in operating conditions.
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Dallas National Bank had the following activities, traceable costs, and physical flow of driver units:
Activities
Traceable Costs
Physical flow of Driver Units
Open new accounts
$50,000
1,000 accounts
Process deposits
36,000
400,000 deposits
Process withdrawals
15,000
200,000 withdrawals
Process loan applications
27,000
900 applications
The above activities are used by the Memorial branch and the University branch:
Memorial
University
New accounts
200
400
Deposits
40,000
20,000
Withdrawals
15,000
18,000
Loan applications
100
160
Refer to Dallas National Bank. What is the cost per driver unit for the deposit activity?
Select one:
a. $30.00
b. $0.09
c. $0.075
d. $50.00
Dallas National Bank had the following activities, traceable costs, and physical flow of driver units:
Activities
Traceable Costs
Physical flow of Driver Units
Open new accounts
$50,000
1,000 accounts
Process deposits
36,000
400,000 deposits
Process withdrawals
15,000
200,000 withdrawals
Process loan applications
27,000
900 applications
The above activities are used by the Memorial branch and the University branch:
Memorial
University
New accounts
200
400
Deposits
40,000
20,000
Withdrawals
15,000
18,000
Loan applications
100
160
Refer to Dallas National Bank. What is the cost per driver unit for new account activity?
Select one:
a. $30.00
b. $0.075
c. $50.00
d. $0.09
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Chapter 4 Solutions
Cornerstones of Cost Management (Cornerstones Series)
Ch. 4 - What is a predetermined overhead rate? Explain why...Ch. 4 - Describe what is meant by under- and overapplied...Ch. 4 - Explain how a plantwide overhead rate, using a...Ch. 4 - What are non-unit-related overhead activities?...Ch. 4 - What is an overhead consumption ratio?Ch. 4 - Overhead costs are the source of product cost...Ch. 4 - What is activity-based product costing?Ch. 4 - What are the six steps that define the design of...Ch. 4 - Explain how the cost of resources is assigned to...Ch. 4 - Prob. 10DQ
Ch. 4 - Identify and define two types of activity drivers.Ch. 4 - What are unit-level activities? Batch-level...Ch. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 1CECh. 4 - Warner Company has the following data for the past...Ch. 4 - Lansing. Inc., provided the following data for its...Ch. 4 - Larsen, Inc., produces two types of electronic...Ch. 4 - Roberts Company produces two weed eaters: basic...Ch. 4 - Golding Bank provided the following data about its...Ch. 4 - Golding Bank provided the following data about its...Ch. 4 - Electan Company produces two types of printers....Ch. 4 - Patterson Company produces wafers for integrated...Ch. 4 - Selected activities and other information are...Ch. 4 - Ripley, Inc., costs products using a normal...Ch. 4 - Predetermined Overhead Rate, Application of...Ch. 4 - Craig Company uses a predetermined overhead rate...Ch. 4 - Departmental Overhead Rates Mariposa, Inc.,...Ch. 4 - McCourt Company produces two types of leather...Ch. 4 - Deoro Company has identified the following...Ch. 4 - Prob. 17ECh. 4 - Secondary Activities Refer to the interview in...Ch. 4 - Bob Randall, cost accounting manager for Hemple...Ch. 4 - Prob. 20ECh. 4 - Bob Randall, cost accounting manager for Hemple...Ch. 4 - Silven Company has identified the following...Ch. 4 - Silven Company has identified the following...Ch. 4 - Gee Manufacturing produces two models of camshafts...Ch. 4 - Cushing, Inc., costs products using a normal...Ch. 4 - Nonunit-level drivers are prominent in...Ch. 4 - Plata Company has identified the following...Ch. 4 - Assume that the inspection activity has an...Ch. 4 - Consider the information given on two products and...Ch. 4 - Primera Company produces two products and uses a...Ch. 4 - Fisico Company produces exercise bikes. One of its...Ch. 4 - Prob. 32PCh. 4 - Glencoe First National Bank operated for years...Ch. 4 - Autotech Manufacturing is engaged in the...Ch. 4 - The Bienestar Cardiology Clinic has two major...Ch. 4 - Reducir, Inc., produces two different types of...Ch. 4 - Refer to the data given in Problem 4.36 and...Ch. 4 - Escuha Company produces two type of calculators:...
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