McCourt Company produces small engines for lawnmower producers. The accounts payable department at McCourt has 10 clerks

Question:

McCourt Company produces small engines for lawnmower producers. The accounts payable department at McCourt has 10 clerks who process and pay supplier invoices. The total cost of their salaries is $500,000. The work distribution for the activities that they perform is as follows:

ActivityPercentage of Time

on Each Activity

Comparing source documents.............................25%

Resolving discrepancies......................................60

Processing payment............................................15

Required:

Assign the cost of labor to each of the three activities in the accounts payable department.

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