Baller  Financial is a banking services company that offers many different types of  checking accounts. The bank has recently adopted an activity-based costing system  to assign costs to their various types of checking accounts. The following data  relate to the money market checking accounts, one of the popular checking  accounts, and the ABC cost pools: 

Annual number of accounts = 59,000  accounts Checking account cost pools:

Cost    Pool	Cost	Cost    Drivers
Returned    check costs	$2,920,000	Number    of returned checks
Checking    account reconciliation costs	59,000	Number    of account reconciliation requests
New    account setup	637,000	Number    of new accounts
Copies    of cancelled checks	393,000	Number    of cancelled check copy requests
Online    banking web site maintenance	188,000	Per    product group (type of account)

Annual activity information related  to cost drivers:

Cost    Pool	All    Products	Money    Market Checking
Returned    check	200,000    returned checks	18,000
Check    reconciliation costs	393,000    checking account	420
New    accounts	60,000    new accounts	15,000
Cancelled    check copy requests	92,000    cancelled check	60,000
Web    site costs	8    types of accounts	1

Calculate the overhead cost per  account for the Money Market Checking.

Answer rating: 100% (QA)

To calculate the overhead cost per account for the Money Market Checking we need to divide the total ... View the full answer