Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assigning Cost of Resources to Activities, Unbundling the General Ledger Golding Bank provided the following data about its resources and activities for its checking account

image text in transcribedimage text in transcribed

Assigning Cost of Resources to Activities, Unbundling the General Ledger Golding Bank provided the following data about its resources and activities for its checking account process: Resources Activities Clerical Hours Supervision $77,000 Processing accounts 8,400 Phone and supplies 100,000 Issuing statements 4,410 Salaries 260,000 Processing transactions 5,670 Computer 30,000 Answering customer inquiries 2,520 Total $467,000 Total 21,000 Computers are used only by the issuing (30 percent) and processing transaction (70 percent) activities. Phone and supplies are 70 percent customer inquiries with the other 30 percent divided equally among the remaining activities, including supervising the checking operation. The supervisor spends 100 percent of his time on supervision. In addition to the 21,000 clerical hours, there are 2,000 hours of supervision used (the hours used by the supervising clerks activity, which is not listed above). Required: 1. Prepare a work distribution matrix for the five primary activities. If an answer is zero, enter "0". Golding Bank Percentage of Time on Each Activity Activity Supervisor Clerks Supervising clerks 100 % 0 % Processing accounts 0 40 Issuing statements 0 21 0 27 Processing transactions Answering customer inquiries 0 12 2. Calculate the cost of each activity. If required, round your answers to the nearest dollar. Activity Total Supervising clerks Processing accounts $ Issuing statements $ Processing transactions $ Answering customer inquiries 3. If the cost of the supervising activity is assigned to the other four activities, what is the final cost of these four primary activities? If required, round your answers to the nearest dollar. Processing accounts Issuing statements Processing transactions Answering customer inquiries

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Clinical Audit Book Improving The Quality Of Health Care

Authors: Clare Mayo, Gill Harvey

1st Edition

070202418X, 978-0702024184

More Books

Students also viewed these Accounting questions

Question

Distinguish between poor and good positive and neutral messages.

Answered: 1 week ago

Question

Describe the four specific guidelines for using the direct plan.

Answered: 1 week ago