Question
In: Accounting
Assigning Cost of Resources to Activities, Unbundling the General Ledger Golding Bank provided the following data...
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 | 9,360 | ||||
| Phone and supplies | 95,000 | Issuing statements | 4,800 | ||||
| Salaries | 265,000 | Processing transactions | 6,720 | ||||
| Computer | 23,000 | Answering customer inquiries | 3,120 | ||||
| Total | $463,000 | Total | 24,000 | ||||
- Computers are used only by the issuing (20 percent) and processing transaction (80 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 24,000 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 | ||
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
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 | $ |
Solutions
Expert Solution
1.
| Golding Bank | ||
| Percentage of Time on Each Activity | ||
| Activity | Supervisor | Clerks |
| Supervising clerks (2000/2000) | 100% | 0% |
| Processing accounts (9360/24000) | 0% | 39% |
| Issuing statements (4800/24000) | 0% | 20% |
| Processing transactions (6720/24000) | 0% | 28% |
| Answering customer inquiries (3120/24000) | 0% | 13% |
2.
| Activity | Total |
| Supervising clerks | $ 44 |
| Processing accounts | $ 12 |
| Issuing statements | $ 13 |
| Processing transactions | $ 15 |
| Answering customer inquiries | $ 32 |
Working:
| Activities | ||||||
| Resources | Supervising clerks | Processing accounts | Issuing statements | Processing transactions | Answering customer inquiries | Total |
| Supervision | 80000 | 0 | 0 | 0 | 0 | 80000 |
| Phone and supplies (30% x 95000/4);(70% x $95000) | 7125 | 7125 | 7125 | 7125 | 66500 | 95000 |
| Salaries (39%, 20%, 28%, 13%) | 0 | 103350 | 53000 | 74200 | 34450 | 265000 |
| Computer (20%,80%) | 0 | 0 | 4600 | 18400 | 0 | 23000 |
| Total | 87125 | 110475 | 64725 | 99725 | 100950 | 463000 |
| Divide by number of hours | 2000 | 9360 | 4800 | 6720 | 3120 | |
| Cost of each activity $ | 44 | 12 | 13 | 15 | 32 | |
3.
| Processing accounts | $ 144,454 |
| Issuing statements | $ 82,150 |
| Processing transactions | $ 124,120 |
| Answering customer inquiries | $ 112,276 |
Working:
| Processing accounts | Issuing statements | Processing transactions | Answering customer inquiries | Total | |
| Activity costs | 110475 | 64725 | 99725 | 100950 | 375875 |
| Allocation of cost of supervising activity (39%, 20%, 28%, 13%) | 33979 | 17425 | 24395 | 11326 | 87125 |
| Total | 144454 | 82150 | 124120 | 112276 | 463000 |
ekkarill92 answered 1 year agoRelated Solutions
Assigning Cost of Resources to Activities, Unbundling the General Ledger Golding Bank provided the following data...
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
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Salaries
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Processing transactions
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Computer
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Answering customer inquiries
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Total
25,000
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