3. What if process improvements decreased the number of customer inquiries, leading to a 10 percent reduction in checkprocessing hours and a $7,200 reduction in total resource costs? Calculate the capacity cost rate for the checking account process.Round your answers to the nearest cent.per hourUpdate all the activity rates for these changes in operating conditions.Processing accountsper accountIssuing statementsper statementProcessing transactionsper transactionAnswering inquiriesper inquiry Simplifying the ABC System: TDABCGolding Bank provided the following data about its resources and activities for its checking account process:Time per UnitResourcesActivitiesActivity DriverSupervision$68,000Processing accounts0.20 hr.No. of accountsPhone and supplies84,000Issuing statements0.10 hr.No. of statementsSalaries188,000Processing transactions0.05 hr.No. of transactionsComputer20,000Answering customer inquiries0.15 hr.No. of inquiriesTotal360,000Total check processing20,000hours(practical capacity)Required:1. Calculate the capacity cost rate for the checking account process. Round your answer to the nearest cent.per hour2. Calculate the activity rates for the four activities. Round your answers to the nearest cent.Processing accountsper accountIssuing statements$4per statementProcessing transactionsper transactionAnswering inquiriesper inquiryIf the total number of statements issued was 26,000, calculate the cost of the issuing statements activity.

Capacity means how much a unit can deliver. Capacity cost rate = Total costs / Total hours

Answered: Simplifying the ABC System: TDABC…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter7: Accounting Information Systems

Section: Chapter Questions

Problem 19MC: The sum of all the accounts in the accounts receivable subsidiary ledger should ________. A. equal...

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