Chapter 4 BEX

Simplifying the ABC System: TDABC Golding Bank provided the following data about its resources and activities for its checking account process: Traditional Time per Unit of Activity Interest-Bearing Account Resources Activities Driver Account $70,000 Processing accounts No, of accounts 0.20 hr. 2,000 1,000 Supervision Phone and supplies 90,000 Issuing statements No. of statements 0.10 hr. 60,000 10,000 Salaries 275,000 Processing transactions No. of transactions 0.05 hr. 160,000 120,000 Computer 25,000 Answering customer inquiries No. of inquiries 0.15 hr. 1,500 1,500 Total $460,000 At practical capacity, Golding uses 25,000 check processing hours.