Question: Assigning Costs to Activities
Golding produces small engines for lawnmower producers. The accounts payable department at Golding has five clerks who process and pay supplier invoices. The total cost of their salaries is $275,000. The work distribution for the activities that they perform is as follows:
Activity Percentage of Time on Each Activity
Comparing source documents 20%
resolving discrepancies 55%
Provessing payment 25%
Required: Assign the cost of labor to each of the three activities in the accounts payable department.