McCourt Company produces small engines for lawnmower producers. The accounts payable department at McCourt has 10 clerks who process and pay supplier invoices. The total cost of their salaries is $550,000. The work distribution for the activities that they perform is as follows: Activity Percentage of Time on Each Activity Comparing source documents 10 % Resolving discrepancies 55 % Processing payment 35 % Required: Assign the cost of labor to each of the three activities in the accounts payable department. Round your answers to the nearest dollar. Activity Cost Assignment Comparing source documents Resolving discrepancies Processing payment
McCourt Company produces small engines for lawnmower producers. The accounts payable department at McCourt has 10 clerks who process and pay supplier invoices. The total cost of their salaries is $550,000. The work distribution for the activities that they perform is as follows: Activity Percentage of Time on Each Activity Comparing source documents 10 % Resolving discrepancies 55 % Processing payment 35 % Required: Assign the cost of labor to each of the three activities in the accounts payable department. Round your answers to the nearest dollar. Activity Cost Assignment Comparing source documents Resolving discrepancies Processing payment
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assigning Costs to Activities
McCourt Company produces small engines for lawnmower producers. The accounts payable department at McCourt has 10 clerks who process and pay supplier invoices. The total cost of their salaries is $550,000. The work distribution for the activities that they perform is as follows:
| Activity | Percentage of Time on Each Activity |
| Comparing source documents | 10 % |
| Resolving discrepancies | 55 % |
| Processing payment | 35 % |
Required:
Assign the cost of labor to each of the three activities in the accounts payable department. Round your answers to the nearest dollar.
| Activity | Cost Assignment |
| Comparing source documents | |
| Resolving discrepancies | |
| Processing payment |
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