Question

Golding Bank provided the following data about its resources and activities for its checking account process: Resources ActivitiesTime per Unit Activity Driver Supervision$68,000 Processing accounts0.20 hr. No. of accounts Phone and supplies82,000 Issuing statements0.10 hr. No. of statements Salaries224,000 Processing transactions0.05 hr. No. of transactions Computer22,000 Answering customer inquiries0.15 hr. No. of inquiries Total396,000 Total check processing hours22,000 (practical capacity) Required: 1. Calculate the capacity cost rate for the checking account process. Round your answer to the nearest cent

Answer 1

Answer:

Please see below

Explanation:

The question above is incomplete. See concluding parts

2. Calculate the activity rates for the four activities . Round your answers to the nearest cent. Processing account per account issuing statement processing transactions per enquiry. If the total number of statement issued was 20,000 calculate the cost of the issuing statements activity.

1. Capacity cost rate

= Total resources / Total checking processing hours

= $396,000 / 22,000

= $18 per hour

2. Calculate the activity rates for the four activity. Round your answers to the nearest cent.

Processing accounts

= 0.20 × $18 = $3.6 per account

Issuing statements

= 0.10 × $18 = $1.8 per statement

Processing transactions

= 0.05 × $18 = $0.9 per transaction

Answering inquiries

= 0.15 × $18 = $2.7 per inquiry

If the total of issuing statement was 20,000 calculate the cost of issuing the issuing statement activity

Issuing statement

= 20,000 × $1.8

= $36,000