Refer to First Choice Credit Union

Essay

Refer to First Choice Credit Union.First Choice Credit Union uses an activity-based costing system.The activity rate for opening and closing statements is based on the number of accounts opened and closed.The activity rate for issuing monthly statements is based on the number of statements issued.The activity rate for processing transactions is based on the number of transactions processed.The activity rate for customer inquiries is based on the number of telephone minutes.The rate for ATM services is based on the number of ATM transactions.
A. Calculate the activity rate for opening and closing accounts.
B. Calculate the activity rate for issuing monthly statements.
C. Calculate the activity rate for processing transactions.
D. Calculate the activity rate for customer inquiries.
E. Calculate the activity rate for providing ATM services.
F. Calculate the cost per account by customer category using the five activity rates.
G. First Choice Credit Union offers free chequing to all its customers. Overall, the interest revenues average $105 per account; however, the interest revenues earned per account by category are $95, $115, and $180 from the low, medium, and high balance accounts, respectively. Calculate the average profit per account for each of the three customer categories.