Answer:
1.$20 per hour
2. Processing accounts $4 per account
Issuing statements $2 per statement
Processing transactions $1 per transaction
Answering inquiries $3 per inquiry
$40,000
Explanation:
1. Calculation to determine the capacity cost rate for the checking account process
Using this formula
Capacity cost rate= Total resources / Total checking processing hours
Let plug in the formula
Capacity cost rate= $400,000 / 20,000
Capacity cost rate= $20 per hour
Therefore the capacity cost rate for the checking account process is $20 per hour
2. Calculation to determine the activity rates for the four activities.
Processing accounts= 0.20 × $20
Processing accounts= $4 per account
Issuing statements= 0.10 × $20
Issuing statements= $2 per statement
Processing transactions= 0.05 × $20
Processing transactions= $1 per transaction
Answering inquiries= 0.15 × $20
Answering inquiries= $3 per inquiry
Therefore the activity rates for the four activities are:
Processing accounts $4 per account
Issuing statements $2 per statement
Processing transactions $1 per transaction
Answering inquiries $3 per inquiry
Calculation to determine the cost of the issuing statements activity If the total of issuing statement was 20,000
Using this formula
Cost of the issuing statements activity= Issuing statements*Total of issuing statement
Cost of the issuing statements activity
Let plug in the formula
Cost of the issuing statements activity= 20,000 × $2
Cost of the issuing statements activity= $40,000
Therefore the cost of the issuing statements activity is $40,000
