Question

Countryside Bank uses activity-based costing to determine the cost of servicing customers. There are three activity pools: teller transaction processing ($2.60 per teller transaction), check processing ($0.20 per canceled check), and ATM transaction processing ($0.15 per ATM transaction). Rosa Bush had 5 teller transactions, 10 canceled checks, and 7 ATM transactions during the month. What is the total monthly activity-based cost for Rosa Bush during the month

Answer 1

Answer: $16.05

Step-by-step explanation:

Teller transaction processing = $2.60 per teller transaction

Check processing = $0.20 per canceled check

ATM transaction processing = $0.15 per ATM transaction

The total monthly activity-based cost for Rosa Bush during the month will be calculated thus:

= (5 × $2.60) + (10 × $0.20) + (7 × $0.15)

= $13.00 + $2.00 + $1.05

= $16.05