The manager of the Windsor branch of the Regal Bank of Canada has provided the following data concerning the transactions of the branch during the past year:
Total Activity at the
Activity Windsor Branch
Opening accounts . . . . . . . . . . . . . . . . . . . . . . . . 200 accounts opened
Processing deposits and withdrawals . . . . . . . . ... 50,000 deposits and withdrawals
Processing other customer transactions. . . . . . . . . 1,000 other customer transactions
The lowest costs reported by other branches for these activities are displayed below:

Required:
1. Using the first-stage allocation from Exercise 7€“10 and the above data, compute the activity rates for the ABC system. Round all computations to the nearest whole cent.
2. What do these results suggest to you concerning operations at the Windsor branch?

Transcribed Image Text:

Lowest Cost among All Regal Bank of Canada Branches $24.35 per account opened $2.72 per deposit or withdrawal $48.90 per other customer transaction Activity Opening accounts... Processing deposits and withdrawals Processing other customer transactions.