How do you compute the Total account costs for each customer retail class and commercial class? Thanks!

Question Help The Bedford branch of Arlington State Savings Bank (ASSB) is a retail branch in a rapidly growing residential area. It services individuals and local businesses. To support its services, the branch employs 14 tellers, 3 retail sales managers (RSM), and the branch managing officer. The branch services about 2.900 customers. Each of the 70 branches of ASSB is implementing ABC in order to improve profitability. ASSB's branch managing officers have been given the responsibility to implement activity-based costing. The managing officer at the Bedford branch decided to implement a two-stage ABC system. The following process map depicts its two-stage ABC system (Click the icon to view the process map.) The results of the ABC study are summarized in the Internal Activity Analysis" (Click the icon to view the internal activity analysis.) (Click the icon to view the cost data for the last year) A part of the activity analysis conducted at the Bedford branch of Arlington State Savings Bank (ASSB) was identifying potential cost drivers for each major activity The following cost drivers were chosen because they were both plausible and reliable and data were available (Click the icon to view the cost driver data) (Click the icon to view the calculation of traceable costs.) (Click the icon to view the benchmarking data) Read the requirements W COURS 168,000 $ 1.4970 Deposits and withdrawals Other transactions 251,500 165,500 $ 51,000 $ 32451 Next, compute the total account cost for each customer class (Round your answers to the nearest whole dollar) (1/1) Retail New accounts Process deposits and withdrawals Process other transactions Total cost Enter any number in the edit fields and then click Check Answer. Check Answer Clear All 6 parts remaining o BI e E 20 Adan ork: Chapter 4 Homework pt 5 of 6 (6 complete) i Figure TELLERS RETAIL SALES MANAGERS $220,000 MANAGING OFFICER $120,000 OTHER RESOURCES (UNALLOCATED) $400,000 $370,000 R M 0 R IR M R M 20% 15% OPEN NEW ACCOUNTS 55% 15% 10% 15% 30% 35% PROCESS PROCESS DEPOSITS AND OTHER WITHDRAWALS TRANSACTIONS No. of No. of PDW Deposits and POT Transactions Withdrawals No. of ONA New Accounts und Print Done ng Clear All e 21 1 pt 5 of 6 (6 complete) HW Score: 92.22% Data Table - X pes try bi cos au All employees have been interviewed as part of the ABC study. For example, tellers were asked how they spent their time. Three major activities were identified. They said that they spent most of their time (55%) processing deposits and withdrawals. They also estimated that they spent about 20% of their time processing new accounts and about 15% of their time processing other transactions. The remaining 10% of their time was spent on all other banking activities. The results of the interviews are presented in the following table Internal Activity Analysis Process All Other Open New Deposits and Process Other Banking Accounts Withdrawals Transactions Activities Total Teller wages 20% 55% 15% 10% 100% Retail sales 5% 15% 25% 55% 100% manager salary 0% 5% Managing officer 25% 70% 100% salary Print Done 5 of 6 (6 complete) HW Score ilal i Data Table - The Bedford branch has the following cost data for the last year Arli ntial e br hm e 70 SSE nen dtd mar -iew Teller wages 370,000 RSM salaries and benefits 260,000 Managing officer salary and benefits 180,000 Other bank costs 480,000 $ Total 1,290,000 The "other bank costs" include depreciation on the facility including furniture, building, equipment, insurance, rentals of computers, contracted computer services, telecommunications, and utilities. These costs cannot be directly or indirectly related to routine bank activities, such as processing new accounts or processing deposits or withdrawals, and, thus, are unallocated. There are no costs that can be traced directly to customers so the Bedford branch has just two types of costs-indirect and unallocated wals al ad Print Done withdrawals 5 of 6 (6 complete) HW ar to) Data Table Activity Cost Driver Annual Flow of Cost Driver Number of new accounts 520 Process new accounts Process deposits and withdrawals 168,000 Number of deposits and withdrawals Process other transactions Number of other transactions 51,000 Print Done account cost for each customer class (Round your answers to the nearest whole dollar.) Retail mmer 2020 Adam M Chapter 4 Homework 5 of 6 (6 complete) to) 1 Data Table d ty the ton State ea. It servi nch employ maging offic ranches of branch ma activity-base implemente depicts its the process Resource Allocated cost Activity Open new accounts Tellers $ 74,000 13,000 he dent IS WE Jaila! ta.) Retail sales managers $ 87,000 trace Resource Total traceable cost Activity Process deposits and withdrawals Allocated cost date $ $ Tellers Retail sales managers 203,500 39,000 9,000 Managing officers ccount cost to Total traceable cost $ 251,500 Activity Resource Allocated cost Tellers $ Process other transactions athdrawals Retail sales managers Managing officers 55,500 65,000 45,000 165,500 ons Total traceable cost S ne edit fields an Print Done Clear All CH UNI r to) ngton State Savinas Rank (ASSRlic a retail branch in a The results of the ABC study are summarized in the maternal - X w ar Data Table an an br s ad im dd tha brand tenti Sent osts of the 2,900 customers of the branch, only 500 are local businesses. The business-customer class generated 20 new accounts, 89,000 deposits and withdrawals, and 22,000 other transactions. The implementation of ABC at all branches of ASSB provided sufficient data for internal benchmarking. The following are the lowest activity costs among all branches implementing two-stage ABC systems Activity Lowest Activity Cost per Driver Unit Open new account $147.06 per new account Process deposits and withdrawals $0.70 per deposit or withdrawal Process other transactions $3.10 per transaction Customer Class Lowest Customer Cost per Account Retail $108.84 Commercial $360.44 Cou dra Print Done Question Help The Bedford branch of Arlington State Savings Bank (ASSB) is a retail branch in a rapidly growing residential area. It services individuals and local businesses. To support its services, the branch employs 14 tellers, 3 retail sales managers (RSM), and the branch managing officer. The branch services about 2.900 customers. Each of the 70 branches of ASSB is implementing ABC in order to improve profitability. ASSB's branch managing officers have been given the responsibility to implement activity-based costing. The managing officer at the Bedford branch decided to implement a two-stage ABC system. The following process map depicts its two-stage ABC system (Click the icon to view the process map.) The results of the ABC study are summarized in the Internal Activity Analysis" (Click the icon to view the internal activity analysis.) (Click the icon to view the cost data for the last year) A part of the activity analysis conducted at the Bedford branch of Arlington State Savings Bank (ASSB) was identifying potential cost drivers for each major activity The following cost drivers were chosen because they were both plausible and reliable and data were available (Click the icon to view the cost driver data) (Click the icon to view the calculation of traceable costs.) (Click the icon to view the benchmarking data) Read the requirements W COURS 168,000 $ 1.4970 Deposits and withdrawals Other transactions 251,500 165,500 $ 51,000 $ 32451 Next, compute the total account cost for each customer class (Round your answers to the nearest whole dollar) (1/1) Retail New accounts Process deposits and withdrawals Process other transactions Total cost Enter any number in the edit fields and then click Check Answer. Check Answer Clear All 6 parts remaining o BI e E 20 Adan ork: Chapter 4 Homework pt 5 of 6 (6 complete) i Figure TELLERS RETAIL SALES MANAGERS $220,000 MANAGING OFFICER $120,000 OTHER RESOURCES (UNALLOCATED) $400,000 $370,000 R M 0 R IR M R M 20% 15% OPEN NEW ACCOUNTS 55% 15% 10% 15% 30% 35% PROCESS PROCESS DEPOSITS AND OTHER WITHDRAWALS TRANSACTIONS No. of No. of PDW Deposits and POT Transactions Withdrawals No. of ONA New Accounts und Print Done ng Clear All e 21 1 pt 5 of 6 (6 complete) HW Score: 92.22% Data Table - X pes try bi cos au All employees have been interviewed as part of the ABC study. For example, tellers were asked how they spent their time. Three major activities were identified. They said that they spent most of their time (55%) processing deposits and withdrawals. They also estimated that they spent about 20% of their time processing new accounts and about 15% of their time processing other transactions. The remaining 10% of their time was spent on all other banking activities. The results of the interviews are presented in the following table Internal Activity Analysis Process All Other Open New Deposits and Process Other Banking Accounts Withdrawals Transactions Activities Total Teller wages 20% 55% 15% 10% 100% Retail sales 5% 15% 25% 55% 100% manager salary 0% 5% Managing officer 25% 70% 100% salary Print Done 5 of 6 (6 complete) HW Score ilal i Data Table - The Bedford branch has the following cost data for the last year Arli ntial e br hm e 70 SSE nen dtd mar -iew Teller wages 370,000 RSM salaries and benefits 260,000 Managing officer salary and benefits 180,000 Other bank costs 480,000 $ Total 1,290,000 The "other bank costs" include depreciation on the facility including furniture, building, equipment, insurance, rentals of computers, contracted computer services, telecommunications, and utilities. These costs cannot be directly or indirectly related to routine bank activities, such as processing new accounts or processing deposits or withdrawals, and, thus, are unallocated. There are no costs that can be traced directly to customers so the Bedford branch has just two types of costs-indirect and unallocated wals al ad Print Done withdrawals 5 of 6 (6 complete) HW ar to) Data Table Activity Cost Driver Annual Flow of Cost Driver Number of new accounts 520 Process new accounts Process deposits and withdrawals 168,000 Number of deposits and withdrawals Process other transactions Number of other transactions 51,000 Print Done account cost for each customer class (Round your answers to the nearest whole dollar.) Retail mmer 2020 Adam M Chapter 4 Homework 5 of 6 (6 complete) to) 1 Data Table d ty the ton State ea. It servi nch employ maging offic ranches of branch ma activity-base implemente depicts its the process Resource Allocated cost Activity Open new accounts Tellers $ 74,000 13,000 he dent IS WE Jaila! ta.) Retail sales managers $ 87,000 trace Resource Total traceable cost Activity Process deposits and withdrawals Allocated cost date $ $ Tellers Retail sales managers 203,500 39,000 9,000 Managing officers ccount cost to Total traceable cost $ 251,500 Activity Resource Allocated cost Tellers $ Process other transactions athdrawals Retail sales managers Managing officers 55,500 65,000 45,000 165,500 ons Total traceable cost S ne edit fields an Print Done Clear All CH UNI r to) ngton State Savinas Rank (ASSRlic a retail branch in a The results of the ABC study are summarized in the maternal - X w ar Data Table an an br s ad im dd tha brand tenti Sent osts of the 2,900 customers of the branch, only 500 are local businesses. The business-customer class generated 20 new accounts, 89,000 deposits and withdrawals, and 22,000 other transactions. The implementation of ABC at all branches of ASSB provided sufficient data for internal benchmarking. The following are the lowest activity costs among all branches implementing two-stage ABC systems Activity Lowest Activity Cost per Driver Unit Open new account $147.06 per new account Process deposits and withdrawals $0.70 per deposit or withdrawal Process other transactions $3.10 per transaction Customer Class Lowest Customer Cost per Account Retail $108.84 Commercial $360.44 Cou dra Print Done