# Refer to the interview in Exercise 4.17 (especially to Question 4 and 7). The general ledger reveals the following annual costs:                           Supervisor’s salary                                      $64, 600 Clerical salaries 210,000 Computers, desks, and printers 32,000 Computer supplies 7,200 Telephone expenses 4,000 ATM$ 1,250,000 All non labor resources, other than the ATM, are spread evenly among the eight credit department employees (in terms of assignment and usage). Credit department employees have no contact with ATMs. Printers and desks are used in the same ratio as computers by the various activities.   Required: Determine the cost of all primary and secondary activities. Assign the cost of secondary activities to the primary activities.

Question

Refer to the interview in Exercise 4.17 (especially to Question 4 and 7). The general ledger reveals the following annual costs:

Supervisor’s salary                                      $64, 600 Clerical salaries 210,000 Computers, desks, and printers 32,000 Computer supplies 7,200 Telephone expenses 4,000 ATM$ 1,250,000

All non labor resources, other than the ATM, are spread evenly among the eight credit department employees (in terms of assignment and usage). Credit department employees have no contact with ATMs. Printers and desks are used in the same ratio as computers by the various activities.

Required:

1. Determine the cost of all primary and secondary activities.
2. Assign the cost of secondary activities to the primary activities.