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 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".
blank
Golding Bank
Percentage of Time on Each Activity
Activity Supervisor Clerks
Supervising clerks fill in the blank 124394feb076046_1
100
% fill in the blank 124394feb076046_2
0
%
Processing accounts fill in the blank 124394feb076046_3
0
fill in the blank 124394feb076046_4
40
Issuing statements fill in the blank 124394feb076046_5
0
fill in the blank 124394feb076046_6
20
Processing transactions fill in the blank 124394feb076046_7
0
fill in the blank 124394feb076046_8
28
Answering customer inquiries fill in the blank 124394feb076046_9
0
fill in the blank 124394feb076046_10
12
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.

Activity Total