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		$80,000		Processing accounts		9,250
Phone and supplies		98,000		Issuing statements		5,500
Salaries		295,000		Processing transactions		7,000
Computer		30,000		Answering customer inquiries		3,250
Total		$503,000		Total		25,000

• Computers are used only by the issuing (20 percent) and processing transaction (80 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 her 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:

Question Content Area

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 67c0ae039fd6fed_1%	fill in the blank 67c0ae039fd6fed_2%
Processing accounts	fill in the blank 67c0ae039fd6fed_3	fill in the blank 67c0ae039fd6fed_4
Issuing statements	fill in the blank 67c0ae039fd6fed_5	fill in the blank 67c0ae039fd6fed_6
Processing transactions	fill in the blank 67c0ae039fd6fed_7	fill in the blank 67c0ae039fd6fed_8
Answering customer inquiries	fill in the blank 67c0ae039fd6fed_9	fill in the blank 67c0ae039fd6fed_10

Feedback Area

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

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 0b6895f6afffff7_1
Processing accounts	$fill in the blank 0b6895f6afffff7_2
Issuing statements	$fill in the blank 0b6895f6afffff7_3
Processing transactions	$fill in the blank 0b6895f6afffff7_4
Answering customer inquiries	$fill in the blank 0b6895f6afffff7_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 0b6895f6afffff7_6
Issuing statements	$fill in the blank 0b6895f6afffff7_7
Processing transactions	$fill in the blank 0b6895f6afffff7_8
Answering customer inquiries	$fill in the blank 0b6895f6afffff7_9