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 $$71,000$ Processing accounts $8,580$

Phone and supplies $94,000$ Issuing statements $4,620$

Salaries $250,000$ Processing transactions $6,600$

Computer $30,000$ Answering customer inquiries $2,200$

Total $$445,000$ Total $22,000$

Computers are used only by the issuing $(40$ percent$)$ and processing transaction $(60$ 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 $22,000$ clerical hours, there are $2,000$ hours of supervision used $($the hours used by the supervising clerks activity, which is not listed above$).$

Required:

Question Content Area

$1.$ Prepare a work distribution matrix for the five primary activities. If an answer is zero, enter $"0".$

blank

Golding Bank

Percentage of Time on Each Activity

Activity Supervisor Clerks

Supervising clerks fill in the blank e$799$b$8$ff$401$a$044\_1$

$100$

$\%$ fill in the blank e$799$b$8$ff$401$a$044\_2$

$0$

$\%$

Processing accounts fill in the blank e$799$b$8$ff$401$a$044\_3$

$0$

fill in the blank e$799$b$8$ff$401$a$044\_4$

Issuing statements fill in the blank e$799$b$8$ff$401$a$044\_5$

$0$

fill in the blank e$799$b$8$ff$401$a$044\_6$

Processing transactions fill in the blank e$799$b$8$ff$401$a$044\_7$

$0$

fill in the blank e$799$b$8$ff$401$a$044\_8$

$30$

Answering customer inquiries fill in the blank e$799$b$8$ff$401$a$044\_9$

$0$

fill in the blank e$799$b$8$ff$401$a$044\_10$

$10$

Question Content Area

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

Activity Total

Supervising clerks $fill in the blank f$5$a$7$d$3$fe$7$fb$4$fca$\_1$

Processing accounts $fill in the blank f$5$a$7$d$3$fe$7$fb$4$fca$\_2$

Issuing statements $fill in the blank f$5$a$7$d$3$fe$7$fb$4$fca$\_3$

Processing transactions $fill in the blank f$5$a$7$d$3$fe$7$fb$4$fca$\_4$

Answering customer inquiries $fill in the blank f$5$a$7$d$3$fe$7$fb$4$fca$\_5$

$3.$ 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 f$5$a$7$d$3$fe$7$fb$4$fca$\_6$

Issuing statements $fill in the blank f$5$a$7$d$3$fe$7$fb$4$fca$\_7$

Processing transactions $fill in the blank f$5$a$7$d$3$fe$7$fb$4$fca$\_8$

Answering customer inquiries $fill in the blank f$5$a$7$d$3$fe$7$fb$4$fca$\_9$