Problem 6 Yesterday Bank had the following activities, traceable costs, and phys

Question

Problem 6

Yesterday Bank had the following activities, traceable costs, and physical flow of driver units:

Activities Traceable Costs Physical Flow of Driver Units
Open new accounts $40,000 1,000 accounts
Process deposits $72,000 360,000 deposits
Process withdrawals $100,000 200,000 withdrawals

The above activities are used by Downtown branch and North branch as follows:

Activities Downtown North
Open new accounts 200 400
Process deposits 40,000 20,000
Process withdrawals 15,000 18,000

Required:
A) Compute the new account cost assigned to the Downtown branch.
B) Compute the deposit processing cost assigned to the North branch.
C) Compute the withdrawal processing cost assigned to the North branch.

Explanation / Answer

a) 40000/1000x200= $8000 b)72,000/360,000x20000= $4000 c) 100,000/200,000x18000= $9000

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