Algebraic methodProsperous Bank has three support areas (administration, human resources, and accounting) and three revenue-generating areas (checking accounts, savings accounts, and loans).Monthly direct costs and the interdepartmental support structure are shown below:Percentage of Service Used byDepartment Direct Costs Admin. Human Resources Accounting Checking Savings LoansAdministration$540,000401020302020Human resourcesAccountingCheckingSavingsLoans360,000300,000630,000337,500675,000Checking $SavingsLoansTotal1010$ 2,842,50010101010Compute the total cost for each revenue-generating area of the bank using the algbraic method.Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar.Note: Round your final answers below to the nearest 100; for example, round 8,668 to 8,700.0 x0 x0 x✓303040

Algbraic method :Under this method the cost of the support area that serves the largest number of…

Prosperous Bank has three support areas (administration, human resources, and accounting) and three revenue-generating areas (checking accounts, savings accounts, and loans). Monthly direct costs and the interdepartmental support structure are shown below: Percentage of Service Used by Department Direct Costs Admin. Human Resources Accounting Checking Savings Loans Administration $540,000 10 40 10 360,000 20 30 300,000 20 20 630,000 337,500 675,000 Human resources Accounting Checking Savings Loans Checking S Savings Loans Total 10 10 0 x 0 x 0x $ 2,842,500✔ 10 10 10 Compute the total cost for each revenue-generating area of the bank using the algbraic method. Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar. Note: Round your final answers below to the nearest 100; for example, round 8,668 to 8,700. 30 30 40

Prosperous Bank has three support areas (administration, human resources, and accounting) and three revenue-generating areas (checking accounts, savings accounts, and loans). Monthly direct costs and the interdepartmental support structure are shown below: Percentage of Service Used by Department Direct Costs Admin. Human Resources Accounting Checking Savings Loans Administration $540,000 10 40 10 360,000 20 30 300,000 20 20 630,000 337,500 675,000 Human resources Accounting Checking Savings Loans Checking S Savings Loans Total 10 10 0 x 0 x 0x $ 2,842,500✔ 10 10 10 Compute the total cost for each revenue-generating area of the bank using the algbraic method. Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar. Note: Round your final answers below to the nearest 100; for example, round 8,668 to 8,700. 30 30 40

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter7: Accounting Information Systems

Section: Chapter Questions

Problem 1EB: For each of the following, indicate if the statement reflects an input component, output component,...

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Simplifying the ABC System: TDABC Golding Bank provided the following data about its resources and activities for its checking account process: Time per Unit Traditional Interest-Bearing Resources Activities Driver of Activity Account Account Supervision $70,000 Processing accounts No. of accounts 0.20 hr 2,000 1,000 Phone and supplies 90,000 Issuing statements No. of statements 0.10 hr. 60,000 10,000 Salaries 275,000 Prncessing transactions No, of transactions 0.05 hr. 160,000 120,000 Computer 25.000 Answering customer inquiries No. af inquiries 0.15 hr. 1,500 1,500 Total $460,000 At practical capacity, Golding uses 25,000 check processing hours. Required: 1. Calculate the capacity cost rate for the checking account process. Round your answers to the nearest cent. 18.4 V per haur Calculate the activity rates for the four activities. Round your answers to the nearest cent. Processing accounts 3.68 V per account Issuing statements 1.84 V per statement Processing transactions 0.92 V per…
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Simplifying the ABC System: TDABC Golding Bank provided the following data about its resources and activities for its checking account process: Time per Unit Traditional Interest-Bearing Resources Activities Driver of Activity Account Account Supervision S70,000 Processing accounts No. of accounts 0.20 hr. 2,000 1,000 Phone and supplies 90,000 Issuing statements No. of statements 0.10 hr. 60,000 10,000 Salaries 275.000 Processing transactions No. of transactions 0.05 hr. 160.000 120,000 Computer 25,000 Answering customer inquiries No. of inquiries 0.15 hr. 1,500 1,500 Tatal $460,000 At practical capacity, Golding uses 25,000 check processing hours. Required: 1. Calculate the capacity cost rate answers to the nearest cent. for the checking account process. Round your 18.4 V per hour Calculate the activity rates for the four activities. Round your answers to the nearest cent. Processing accounts 3.68 V per account Issuing statements 1.84 V per statement Processing transactions 0.92 V per…
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