Biltmore financial is a banking services company that

Reference no: EM13584800

Biltmore Financial is a banking services company that offers many different types of checking accounts. The bank has recently adopted an activity-based costing system to assign costs to their various types of checking accounts. The following data relate to the money market checking accounts, one of the popular checking accounts, and the ABC cost pools:

Annual number of accounts = 60,000 accounts
Checking account cost pools:

Cost Pool	Cost	Cost Drivers
Returned check costs	$3,000,000	Number of returned checks
Checking account reconciliation costs	60,000	Number of account reconciliation requests
New account setup	650,000	Number of new accounts
Copies of cancelled checks	400,000	Number of cancelled check copy requests
Online banking web site maintenance	195,000	Per product group (type of account)
Total checking account costs	$4,305,000

Annual activity information related to cost drivers:

Cost Pool	All Products	Money Market Checking
Returned check	200,000 returned checks	18,000
Check reconciliation costs	3,000 checking account	420
New accounts	60,000 new accounts	15,000
Cancelled check copy requests	100,000 cancelled check	60,000
Web site costs	10 types of accounts	1

Calculate the overhead cost per account for the Money Market Checking.

Reference no: EM13584800

Questions Cloud

Statistic mathlab complete solution to be done on : complete solution. to be done on mathlab. ltbrgt ltbrgtmathlab code and output to be given ltbrgtand done up on .doc

Rockwell company owns a single restaurant which has a : rockwell company owns a single restaurant which has a cantina primarily used to seat patrons while they wait on their

Nbspa proposed solar collector installation has a frontal : nbspa proposed solar collector installation has a frontal area exposed to the sun of 50.0 m2 and combines a

A large municipality is considering the enactment of an ad : 1.caroline and clint are married have no dependents and file a joint return in 2013. use the following selected data to

Biltmore financial is a banking services company that : biltmore financial is a banking services company that offers many different types of checking accounts. the bank has

Using an a 004 a confidence interval for a population : using an a 0.04 a confidence interval for a population proportion is determined to be 0.65 to 0.75. if the level of

Library resources company uses activity-based costingthe : library resources company uses activity-based costing.the company produces soft and hard-cover books. the estimated

A machine that produces a major part for an airplane engine : a machine that produces a major part for an airplane engine is monitored closely. in the past 10 of the parts produced

Fulbright corp uses the periodic inventory system during : fulbright corp. uses the periodic inventory system. during its first year of operation fulbright made the following

User Account

All Pages