Norrison automotive produces brake systems for major, Financial Accounting

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Norrison automotive produces brake systems for major

ASSIGNING COSTS TO ACTIVITIES

Norrison Automotive produces brake systems for major automobile producers. The accounts payable department at Norrison has five clerks who process and pay supplier invoices. The total cost of their salaries is $250,000. The work distribution for the activ- ities that they perform is as follows:

Activity	Percentage of Time on Each Activity
Comparing source documents	25%
Resolving discrepancies	45%
Processing payment	30%

Required:

Assign the cost of labor to each of the three activities in the accounts payable department.

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Financial Accounting: Norrison automotive produces brake systems for major

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