Question: Rock Solid Bank and Trust (RSB&T) - Activity-Based Cost Management Demo perceut on all depolits: A reseat study classifed the bank's annatl operating coets iato
Rock Solid Bank and Trust (RSB\&T) - Activity-Based Cost Management Demo perceut on all depolits: A reseat study classifed the bank's annatl operating coets iato four activities. Ditan on Nrquined a. Compie RSBATr opsintine profits are a reccent ($150000003355.000000) of deponts. Rock Solid Bank and Trust (RSB\&T) - Activity-Based Cost Management Demo Rock Solid Blank and Trast (RSBET) offers only clsecking accounts. Customieis can write checks and use a network of autonated teller machines. R.SB\&T earns revenue by irvesting the money deposited; currently, it averages 5.2 percent annually on its investaents of those deposits. To compete with lager baaks, RSBET pays depositors 0.5 percent on all deposits. A recent study classified the bank's anntal operating costs into four activities. Data on two repiesentative custoners follow. Rryaind a. Compute RSHAT's operating partits. 6. Congute the piotit frou Certomer A and Custouner B. assiasine that cesonser costs ae bused only oa deposits. Laterest costs = 0.5 percent of deposits operatiog costs are 4 perceat ($15,000,000%$375,000,000) of deposits c. Compute the proft from Cubtomer A and Custouner B, assuaing that customer costs are conpoted using the information in the activity based costing analysis
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
