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Simplifying the ABC System: TDABC Golding Bank provided the following data about its two checking account products and their associated resources and activities: Resources Supervision Phone and supplies Salaries Computer Total Activities $68,000 Processing accounts 86,000 Issuing statements 236,000 Processing transactions 26,000 Answering customer inquiries 416,000 At practical capacity, Golding uses 26,000 check processing hours. Required: Processing accounts Issuing statements Processing transactions Time per Unit Activity Driver per account 0.20 hr. per statement per transaction 0.10 hr. 0.05 hr. 0.15 hr. No. of accounts No. of statements No. of transactions Calculate the activity rates for the four activities. Round your answers to the nearest cent. No. of inquiries 1. Calculate the capacity cost rate for the checking account process. Round your answer to the nearest cent. your ans per hour Traditional Interest-Bearing Account Account 3,000 60,000 160,000 1,500 1,600 10,000 120,000 1,500

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 capacity cost rate for the checking account process. Round yourbanswer to the nearest cent. per hour Calculate the activity rates for the four activities, Round your answers to the nearest cent. 4. What if process improvements decreased the number of customer inquiries, leading to a 10 percent reduction in check processing hours and a $4,160 reduction in total resource costs? Calculate the capacity cost rate for the checking account process. Round your answers to the nearest cent. per hour Update all the activity rates for these changes in operating conditions. 2. Assuming there are 3,000 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. Again, assuming that there are 2,000 interest bearing accounts, show that the resource cost per account is the same as calculated in Requirement 2. Round your answers to the nearest cent. Unit cost =($ )()/

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