Ada National Bank Ada National Bank had the following activities, traceable costs, and
Physical flow of driver units:
The above activities are used by the Broken Arrow branch and the Choctaw branch:
Refer to Ada National Bank. How much of the new account cost will be assigned to the Choctaw branch?
A) $10,000
B) $20,000
C) $30,000
D) $50,000

Question

Ada National Bank Ada National Bank had the following activities, traceable costs, and
Physical flow of driver units:
 The above activities are used by the Broken Arrow branch and the Choctaw branch:
 Refer to Ada National Bank. How much of the new account cost will be assigned to the Choctaw branch?
A) $10,000 
B) $20,000 
C) $30,000 
D) $50,000

Quizplus · Accepted Answer

The new account cost is a direct cost of the account opened and is therefore directly assignable to the branch where the account was opened. In this case, the Choctaw branch had 40% of the physical flow of driver units in opening new accounts, so they will be assigned 40% of the new account cost, which is $50,000, for a total of $20,000.

Ada National Bank Ada National Bank Had the Following Activities