the manager of the avon branch of first bank of 272739

The manager of the Avon branch of First Bank of Eagle has provided the following data concerning the transactions of the branch during the past year:

Activity Total Activity at the Avon Branch

Opening accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 accounts opened

Processing deposits and withdrawals . . . . . . . . . . . . 50,000 deposits and withdrawals

Processing other customer transactions . . . . . . . . . . 1,000 other customer transactions

The lowest costs reported by other branches for these activities are displayed below:

Lowest Cost Among

Activity All First Bank of Eagle Branches

Opening accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . $24.35 per account opened

Processing deposits and withdrawals . . . . . . . . . . . . $2.72 per deposit or withdrawal

Processing other customer transactions . . . . . . . . . . $48.90 per other customer transaction

Required:

1. Using the first stage allocation from Exercise 8 10 and the above data, compute the activity rates for the activity based costing system. Round all computations to the nearest whole cent.

2. What do these results suggest to you concerning operations at the Avon branch?