refer to the interview in exercise 4 7 especially to questions 272470

Refer to the interview in Exercise 4 7 (especially to Questions 4 and 7). The general ledger reveals the following annual costs:

Supervisor’s Salary ……………………$ 64,600

Clerical Salaries ………………………. 210,000

Computers, Desks, and Printers ………. 32,000

Computer Supplies ……………………. 7,200

Telephone Expenses …………………… 4,000

ATM ………………………………….. 1,250,000

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 by the various activities in the same ratio as computers.

Required:

1. Determine the cost of all primary and secondary activities.

2. Assign the cost of secondary activities to the primary activities.

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