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).

Golding Bank Percentage of Time on Each Activity

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.