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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 14
Assigning Resource Costs to Activities, Resource Drivers, Primary and Secondary Activities
Refer to the interview in Exercise 4.16 (especially to Questions 4 and 7). The general ledger reveals the following annual costs:
All nonlabor 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.
Refer to the interview in Exercise 4.16 (especially to Questions 4 and 7). The general ledger reveals the following annual costs:
All nonlabor 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.
Explanation
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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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