The HDFC Bank Ltd is contemplating to implement an ABC system for its teller department The activities identified and the associated cost drivers for its New Friends Colony Branch are summarised below REQUIRED (a) Compute the activity cost driver rates for each of the support facilities (b) Estimate in total monthly support costs for a typical amount from the information given below Support activity 1 Process deposits Estimated Activity cost driver Quantity cost 1,48,150 Number of deposits processed 1 66 250 2 Process withdrawals 1,30,400 Number of withdrawals processed 1,13,750 3 Answer inquiries 1,24,000 Number of customer inquiries 2,25,000 4 Negotiable instruments' selling 24,300 Number of negotiable instruments sold 5,500 5 Balance drawers 21,450 Number of drawers balanced 6,500

Question: The HDFC Bank Ltd. is contemplating to implement an ABC system for its teller department. The activities identified and the associated cost drivers for its

The HDFC Bank Ltd. is contemplating to implement an ABC system for its teller department.

The activities identified and the associated cost drivers for its New Friends Colony Branch are summarised below: Support activity 1 Process deposits Estimated Activity cost driver Quantity cost 1,48,150

REQUIRED:

(a) Compute the activity cost driver rates for each of the support facilities.

(b) Estimate in total monthly support costs for a typical amount from the information given below: Number of deposits processed 1.66.250 2 Process withdrawals 1,30,400 Number of withdrawals

Support activity 1 Process deposits Estimated Activity cost driver Quantity cost 1,48,150 Number of deposits processed 1.66.250 2 Process withdrawals 1,30,400 Number of withdrawals processed 1,13,750 3 Answer inquiries 1,24,000 Number of customer inquiries 2,25,000 4 Negotiable instruments' selling 24,300 Number of negotiable instruments sold 5,500 5 Balance drawers 21,450 Number of drawers balanced 6,500

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