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		$70,000		Processing accounts		10,000
Phone and supplies		90,000		Issuing statements		5,000
Salaries		275,000		Processing transactions		7,000
Computer		25,000		Answering customer inquiries		3,000
Total		$460,000		Total		25,000

Computers are used only by the issuing (30 percent) and processing transaction (70 percent) activities.

Phone and supplies are 60 percent customer inquiries with the other 40 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 25,000 clerical hours, there are 2,000 hours of supervision used (the hours used by the supervising clerks activity, which is not listed above).

Required:

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	%	%
Processing accounts
Issuing statements
Processing transactions
Answering customer inquiries

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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?

Processing accounts	$
Issuing statements	$
Processing transactions	$
Answering customer inquiries