Question: please help! 6 Simplifying the ABC System: TDABC Golding Bank provided the following data about its two checking account products and their associated resources and

Simplifying the ABC System: TDABC Golding Bank provided the following data about its two checking account products and their associated resources and activities: At practical capacity, Golding uses 26,000 check processing hours. Required: 1. Calculate the capocity cost rate for the checking account process. Round your answer to the nearest cent. $ per hour. Calculate the activity rates for the four activities. Round your answers to the nearest cent. If the total number of statements issued was 18,000 , calculate the cost of the issuing statements activity. If the total number of statements issued was 18,000 , calculate the cost of the issuing statements activity. 4 2. Assuming there are 2,000 interest-bearing checking accounts, calculate the cost per account using the activity rates from Requirement 1 . Round your answers to the nearest cent. Unit cost \$ 3. A time equation is used to assign resource costs to checking accounts. Select a time equation for the interest-bearing checking account product. 0.20( number of accounts) +0.10( number of statements )+0.05( number of transactions) +0.15( number of inquiries) Again, assuming that there are-3,000 interest bearing accounts, show that the resource cost per account is the same as calculated in Reguirement 2 . Round your answers to the nearest cent. s. x 4. What if process improvements decreased the mumber of customer inquiries, leading to a 10 percent reduction in check processing hours and a {4,160 reductian in total rescurce costs? Calculate the capacity cost rate for the checking account process, Round your answers to the nearest cent. 9 per hour Update all the activity rates for these changes in operating conditions
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
