Assigning Cost of Resources to Activities, Unbundling the General Ledger Golding Bank provided the following data about
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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 | $79,000 | Processing accounts | 7,600 | ||||
Phone and supplies | 96,000 | Issuing statements | 4,400 | ||||
Salaries | 260,000 | Processing transactions | 5,800 | ||||
Computer | 29,000 | Answering customer inquiries | 2,200 | ||||
Total | $464,000 | Total | 20,000 |
- 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 her time on supervision. In addition to the 20,000 clerical hours, there are 2,000 hours of supervision used (the hours used by the supervising clerks activity, which is not listed above).
Activity | Supervisor | Clerks |
Supervising clerks | 100% | 0% |
Processing accounts | 0% | 38% |
Issuing statements | 0% | 22% |
Processing transactions | 0% | 29% |
Answering customer inquiries | 0% | 11% |
Required:
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 |
Please explain each step.
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