Dallas National Bank had the following activities, traceable costs, and physical flow of driver units: Activities Traceable Costs Physical flow of Driver Units Open new accounts $50,000 1,000 accounts Process deposits 36,000 400,000 deposits Process withdrawals 15,000 200,000 withdrawals Process loan applications 27,000 900 applications The above activities are used by the Memorial branch and the University branch:   Memorial University New accounts 200 400 Deposits 40,000 20,000 Withdrawals 15,000 18,000 Loan applications 100 160 Refer to Dallas National Bank.  What is the cost per driver unit for the deposit activity? Select one: a. $30.00 b. $0.09 c. $0.075 d. $50.00

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 7CE: Golding Bank provided the following data about its resources and activities for its checking account...
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Dallas National Bank had the following activities, traceable costs, and physical flow of driver units:

Activities Traceable Costs Physical flow of Driver Units
Open new accounts $50,000 1,000 accounts
Process deposits 36,000 400,000 deposits
Process withdrawals 15,000 200,000 withdrawals
Process loan applications 27,000 900 applications

The above activities are used by the Memorial branch and the University branch:

  Memorial University
New accounts 200 400
Deposits 40,000 20,000
Withdrawals 15,000 18,000
Loan applications 100 160

Refer to Dallas National Bank.  What is the cost per driver unit for the deposit activity?

Select one:
a. $30.00
b. $0.09
c. $0.075
d. $50.00
 
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