Wells Fargo Bank uses activity-based costing. It has the following activities, traceable costs, and cost drivers: 

 

Required: 

A) Compute the new account cost assigned to the Uptown branch.

B) Compute the deposit processing cost assigned to the Downtown branch. 

C) Compute the withdrawal processing cost assigned to the Downtown branch.

Transcribed Image Text:

Activities Open new accounts Process deposits Process withdrawals Traceable Costs Cost Drivers $40,000 1,000 accounts $72,000 360,000 deposits 200,000 withdrawals $100,000 The above activities are used by Downtown branch and North branch as follows: Activities Open new accounts Process deposits Process withdrawals Downtown 200 40,000 15,000 North 400 20,000 18,000 Activities Open new accounts Process deposits Process withdrawals Traceable Costs Cost Drivers $40,000 1,000 accounts $72,000 360,000 deposits 200,000 withdrawals $100,000 The above activities are used by Downtown branch and North branch as follows: Activities Open new accounts Process deposits Process withdrawals Downtown 200 40,000 15,000 North 400 20,000 18,000

Answer rating: 100% (QA)

A Activity 1 2 Open new accounts 3 Process deposits 4 P... View the full answer