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		$74,000		Processing accounts		8,580
Phone and supplies		100,000		Issuing statements		4,840
Salaries		300,000		Processing transactions		6,160
Computer		21,000		Answering customer inquiries		2,420
Total		$495,000		Total		22,000

• 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 22,000 clerical hours, there are 4,000 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	fill in the blank a9a4cd092fb105d_1%	fill in the blank a9a4cd092fb105d_2%
Processing accounts	fill in the blank a9a4cd092fb105d_3	fill in the blank a9a4cd092fb105d_4
Issuing statements	fill in the blank a9a4cd092fb105d_5	fill in the blank a9a4cd092fb105d_6
Processing transactions	fill in the blank a9a4cd092fb105d_7	fill in the blank a9a4cd092fb105d_8
Answering customer inquiries	fill in the blank a9a4cd092fb105d_9	fill in the blank a9a4cd092fb105d_10

Feedback

1. A work distribution matrix simply identifies the Amount of labor consumed by each activity. The supervising ratio is given. The remaining four ratios are calculated using the clerical hrs. total processing hours

2. Calculate the cost of each activity. If required, round your answers to the nearest dollar.

Activity	Total
Supervising clerks	$fill in the blank 77bff009003800c_1
Processing accounts	$fill in the blank 77bff009003800c_2
Issuing statements	$fill in the blank 77bff009003800c_3
Processing transactions	$fill in the blank 77bff009003800c_4
Answering customer inquiries	$fill in the blank 77bff009003800c_5

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	$fill in the blank 77bff009003800c_6
Issuing statements	$fill in the blank 77bff009003800c_7
Processing transactions	$fill in the blank 77bff009003800c_8
Answering customer inquiries	$fill in the blank 77bff009003800c_9