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 his 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: 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. 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? Processing accounts $ Issuing statements $ Processing transactions $ Answering customer inquiries $
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 his 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: 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. 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? Processing accounts $ Issuing statements $ Processing transactions $ Answering customer inquiries $
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 7CE: Golding Bank provided the following data about its resources and activities for its checking account...
Related questions
Question
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 his 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:
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 |
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.
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?
Processing accounts | $ |
Issuing statements | $ |
Processing transactions | $ |
Answering customer inquiries | $ |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning