Question

Refer to the interview in Exercise 4.16 (especially to Questions 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 con- tact 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.


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  • CreatedSeptember 01, 2015
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