Question

Calculator Assigning Cost of Resources to Activities, Unbunding the General Ledger Golding Bank provided the following data about its resources Resources Supervision 93,000 295,000 25,000 $491,000 Issuing statements Processing transactions Answering customer inquiries 6,240 7,280 3,120 26,000 Salaries Computer Total Total . Computers are used only by the issuing (30 percent) and processing transaction (70 percent) activities. Phone and supplies are 80 percent customer Inquiries with the other 20 percent divided equally among the remaining activities, induding supervising the checking The supervisor spends 100 percent of his time on supervision. In addition to the 26,000 clerical hours, there are 4,000 hours of supervision used (the hours used by the supervising dlerks activity, which is not listed above). Required 1. Prepare a work distribution matrix for the five primary activities. If an answer is zero, enter "o". Golding Bank of Time on Each Activity 238PM 4/16/2019 1. Prepare a work distribution matrix for the five primary activities. If an answer is zero, enter "o Golding Bank Activity Supervisor Clerks Processing accounts Issuing statements Processing transactions custoner nqunes 2. Calculate the.cost of each activity. If required, round your answers to the nearest dollar. Activity Total 2:39 PM /16/2019 Answering customer inquiries□ □ □コ answerg to the nearest dollar

Answer 1

Solution:

1) Work Distribution Matrix Golding Bank Percentage of Time on Each Activity Supervisor WN1(a) Activity Clerks Supervising Clerk Processing Account Issuing Statements Processing Transactions Answering Customer Inueries 100% 15% 15% 15% 15% 0% 36% 24% 28% 12% Working Note 1(a) Supervisor spends 4000 hours on supervision It is concluded that the supervisor spends 4000 hours on each of the Activity in the ratio of their clerical hours Total Supervisor Hours Processing Account Issuing Statements Processing Transactions Answering Customer Inueries 4,000 1,440 960 1,120 480 26,000 9,360 6,240 7,280 3,120

2) Cost of Each Activity Computer Phone & Supplies (WN2) Activity Total Salaries Expenses (WN1) $82,650 $1,28,350 $82,950 $87,250 $1,09,800 $0 $17,500 $7,500 $78,000 $4,650 $1,06,200 $70,800 $82,600 $35,400 $4,650 Supervising Clerk Processing Account Issuing Statements Processing Transactions Answering Customer Inueries $4,650 $4,650 $74,400

Working Note 1 Allocation of Computer Expense: Total Computer Expense $25,000 Computer Expense used for issuing statements 30 %-$ 25000 * 30%-$ 7,500 Computer Expense used for Processing Transaction 70 %-$ 25000 * 70%-$ 17,500 Working Note 2 Allocation of Phone and Supplies: Total Phone and supply Expense 93,000 Phone and Supplies Expense used in handling Customer inquiries 80 %-$ 93,000 * 80%-$ 74,400 Phone and Supplies Expense used equally for other activity 20%-$93,000 * 20%-$ 18,600 Equally distributed among Phone and Supplies Expenses Supervising Clerk Processing Account Issuing Statements Processing Transactions $18,600 $4,650 $4,650 $4,650 $4,650 Working Note 2 Allocation of Salaries: Salary allocated according to their Working Hours Amount Hours Total Salaries Processing Account Issuing Statements Processing Transactions Answering Customer Inueries $2,95,000 $1,06,200 $70,800 $82,600 $35,400 26,000 9,360 6,240 7,280 3,120

3) Total Cost of Supervision assigned to Four Primary Activity Computer Phone & Expenses Supplies Cost of Activity Total Salaries Supervising (WN1) (WN2) Activity $82,650 $1,58,104 $1,02,786 1,10,392 Answering Customer Inueries $1,19,718 Supervising Clerk Processing Account Issuing Statements Processing Transactions $0 $17,500 $7,500 $78,000 $4,650$1,06,200 $70,800 $82,600 $35,400 $4,650 $82,650 Allocated based on their Activities clerical hours $29,754 $19,836 $23,142 $4,650 $4,650 $74,400 $9,918