Calculate the overhead cost per account for the Money Market Checking

QUALITYWRITERS.ORG is the ideal place for homework help. If you are looking for affordable, custom-written, high-quality and non-plagiarized papers, your student life just became easier with us. Click the button below to place your order.


Order a Similar Paper Order a Different Paper

Baller 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 = 51,000 accounts  Checking account cost pools:

Cost Pool Cost Cost Drivers
Returned check costs $2,900,000 Number of returned checks
Checking account reconciliation costs 56,000 Number of account reconciliation requests
New account setup 647,000 Number of new accounts
Copies of cancelled checks 385,000 Number of cancelled check copy requests
Online banking web site maintenance 184,000 Per product group (type of account)

Annual activity information related to cost drivers:

Cost Pool All Products Money Market Checking
Returned check 194,,000 returned checks
Check reconciliation costs 385,000 checking account
New accounts 54,000 new accounts
Cancelled check copy requests 94,000 cancelled check
Web site costs 4 types of accounts

Calculate the overhead cost per account for the Money Market Checking


Writerbay.net

Got stuck with a writing task? We can help! Use our paper writing service to score better grades and meet your deadlines.

Get 15% discount for your first order


Order a Similar Paper Order a Different Paper
Writerbay.net