Activity-Based Costing for a Service Business Metropolitan Bank uses activity-ba

Question

Activity-Based Costing for a Service Business

Metropolitan Bank uses activity-based costing to determine the cost of servicing customers. There are three activity pools: teller transaction processing, check processing, and ATM transaction processing. The activity rates associated with each activity pool are $3.20 per teller transaction, $0.20 per canceled check, and $0.08 per ATM transaction. Julie Stone had 8 teller transactions, 86 canceled checks, and 20 ATM transactions during the month.

Determine the total monthly activity-based cost for Stone during the month. Round your answer to the nearest cent.
$

Explanation / Answer

Cost Pools Activity rate per processing   A No. of transaction B Activity Based Cost A*B Teller Tranaction processing $3.20 8 $25.60 Check processing 0.2 86 $17.20 ATM transaction processing 0.08 20 $1.60 Total montly Activity Based Cost $44.40

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.