Answer:
The computation of the activity rates for the activity-based costing system is shown below:-
Explanation:
Opening Processing Processing Other Totals
accounts Deposits and other activities
Withdraws Customers
transactions
Teller wages $5,800 $108,750 $26,100 $4,350 $145,000
Assistant
branch
manager
salary $4,800 $6,600 $16,200 $32,400 $60,000
Branch
manager
salary $3,760 $0 $20,680 $69,560 $94,000
$14,360 $115,350 $62,980 $106,310
Working Note
Opening Processing Processing Other
accounts Deposits and other activities
Withdraws Customers
transactions
Teller
wages ($145,000 × 4%) ($145,000 × 75%) ($145,000 × 18%) ($145,000 × 3%)
Assistant
branch
manager
salary ($60,000 × 8%) ($60,000 ×11%) ($60,000 × 27%) ($60,000 × 54%)
Branch
manager
salary ($94,000 × 4%) ($94,000 × 0%) ($94,000 × 22%) ($94,000 × 74%)
Activity Activity cost Cost drivers Activity rate
Opening accounts $14,360 230 $62.43
Processing deposits
and Withdrawals $115,350 51,000 $2.26
Processing other
customers
transactions $62,980 1,150 $54.77
