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.