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		9,200
Phone and supplies		92,000		Issuing statements		5,750
Salaries		275,000		Processing transactions		6,210
Computer		27,000		Answering customer inquiries		1,840
Total		$471,000		Total		23,000

• Computers are used only by the issuing (40 percent) and processing transaction (60 percent) activities.
• Phone and supplies are 80 percent customer inquiries with the other 20 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 23,000 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".

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	$