PAYROLL ACCT.,2019 ED.(LL)-W/ACCESS
PAYROLL ACCT.,2019 ED.(LL)-W/ACCESS
29th Edition
ISBN: 9781337619905
Author: BIEG
Publisher: CENGAGE L
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Chapter 1, Problem 4QD

The main office of a large bank has an annual turnover of 500 office workers. As an employment officer of this bank, discuss the sources you would use in obtaining replacement employees.

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Morrisom National Bank has requested an analysis of checking account profitability by customer type. Customers are categorized according to the size of their account: low balances, medium balances, and high balances. The activities associated with the three different customer categories and their associated annual costs are as follows: Opening and closing accounts $300,000 Issuing monthly statements $450,000 Processing transactions $3,075,000 Customer Inquiries $600,000 Providing ATM services $1,680,000 Total cost $6,105,000 Additional data concerning the usage of the activities by the various customers are also provided:   Account Balance                                                             Low    Medium    HighNumber of accounts opened/closed   22,500     4,500     3,000  Number of statements issued   675,000     150,000     75,000  Processing transactions   27,000,000     3,000,000     750,000  Number of telephone minutes   1,500,000     900,000     600,000  Number of ATM…
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Seal Financial Advisors provides accounting and finance assistance to customers in the retail business. Seal has four professionals on staff and an office with six clerical staff. Total​ compensation, including​ benefits, for the professional staff runs about​ $573,000 per​ year, and normal billable hours are​ 8,300 hours per year. The professional staff keep detailed time sheets organized by client number. The total office and administrative costs for the year are​ $755,000. Seal allocates office and administrative costs to clients​ monthly, using a predetermined overhead allocation rate based on billable hours. What is the predetermined overhead allocation rate that Seal will use for office and administrative​ costs? (Round your answer to the nearest​ cent.)   A. ​$69.04 per hour   B. ​$21.93 per hour   C. ​$160.00 per hour   D. ​$90.96 per hour
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