Question

Dallas National Bank had the following activities, traceable costs, and physical flow of driver units: Activities Traceable Costs Physical flow of Driver Units Open new accounts $50,000 1,000 accounts Process deposits 36,000 400,000 deposits Process withdrawals 15,000 200,000 withdrawals Process loan applications 27,000 900 applications The above activities are used by the Memorial branch and the University branch: Memorial University New accounts 200 400 Deposits 40,000 20,000 Withdrawals 15,000 18,000 Loan applications 100 160 Refer to Dallas National Bank. How much of the deposit cost will be assigned to the University branch

Answer 1

Dallas National Bank

The deposit cost assigned to the University branch is:

= $1,800.

Step-by-step explanation:

a) Data and Calculations:

Activities Traceable Costs Physical flow

of Driver Units Rate

Open new accounts $50,000 1,000 accounts $50

Process deposits 36,000 400,000 deposits $0.09

Process withdrawals 15,000 200,000 withdrawals $0.075

Process loan applications 27,000 900 applications $30

Memorial University

New accounts 200 400

Deposits 40,000 20,000

Withdrawals 15,000 18,000

Loan applications 100 160

Deposits cost assigned to the University:

= $1,800 (20,000 * $0.09)