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Chapter8 - Opening Account Processing Deposit Processing...

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Exercise 8-8 Activity measures Activity Examples of Activity measures Activity measures a) Direct labor workers assemble&product unit-level number of DL hours b) Products are designed by engineers Product-level number of product designed c) Equipment is setup Batch-level number of setup d) Machine are used to shaped cut materials unit-level number of machine hours e) Monthly bills are sent out to regular customer customer-level number of bills f) Materials are moved from the receiving dock to production lines Batch-level numbers of batch g) All completed units are inspected for defects unit-level number of inspected unit Exercise 8-9 Computing ABC Product Costs i. Machine setup = $72,000 400 = 180/Setup ii. Special processing = $200,000 5,000 = 40/machine hours iii. General factory = $816,000 24,000 Exercise 8-10 First Stage Allocation
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Unformatted text preview: Opening Account Processing Deposit Processing other customer Other activity Total Teller wages 5%x160,000=8, 000 65%x16,000=10 4,000 20%x160,000=3 2,000 10%x160,000=1 6,000 160,0 00 Assistant branch managem ent 15%x75,000=11 ,250 5%x75,000=375 30%x75,000=22, 500 50%x75,000=37, 500 75,00 Branch manager salary 5%x80,000=4,0 00 _ 10%x80,000=8,0 00 85%x80,000=68, 000 80,00 Total 23,250 107,750 65,000 121,500 315,0 00 Exercise 8-11 Computing and Interpreting Activity Rates Activity cost pools Total cost Total activity Activity rate (a/b) Opening account 23,250 500 $46.5/new account Process deposit and withdrawals 107,750 100,000 $1.08/process Processing other customer transaction 62,500 5,000 $12.5/other process...
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Chapter8 - Opening Account Processing Deposit Processing...

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