Question
Question Content Area The accounts payable department of Lister company has 11 clerks; ten of the clerks are paid $35,000 per year ($350,000 total clerical
Question Content Area
The accounts payable department of Lister company has 11 clerks; ten of the clerks are paid $35,000 per year ($350,000 total clerical salaries). The head clerk is paid $40,000 per year. Six of the clerks spend the following percentages of time on the three activities:
30% of their time on processing payments 30% of their time matching invoices, receiving documents, and billing statements 40% of their time correcting errors in the various documents
The head clerk spends 60% of her time on administrative duties and the remainder on error correction. The remaining four clerks spend 40% of their time on processing payments and the remaining 60% of their time on matching documents.
Long-distance telephone costs of $2,000 are directly traced to the activity "correcting errors."
Required:
Complete the following:
A. The total cost of the processing payments activity is $fill in the blank 1.
B. The total cost of the matching documents activity is $fill in the blank 2.
C. The total cost of the administration activity is $fill in the blank 3.
D. The total cost of the "correcting errors" activity is $fill in the blank 4
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