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10. Walid Corporation operates a fleet of armored cars that make scheduled pickups and deliveries for its customers in the Muscat area. The company
10. Walid Corporation operates a fleet of armored cars that make scheduled pickups and deliveries for its customers in the Muscat area. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The following costs will be assigned using the activity-based costing system: Driver and guard wages. $420,000 Vehicle operating expense .300,000 Vehicle depreciation.... 200,000 Customer representative salaries and expenses. 180,000 Office expenses .50,000 Administrative expenses 350,000 Total cost .$1,500,000 The distribution of resource consumption across the activity cost pools is as follows: Travel Pickup and delivery Customer other Total service Driver and guard wages 45% 35% 15% 5% 100% Vehicle operating expense 70% 10% 0% 20% 100% Vehicle depreciation 65% 15% 0% 20% 100% Customer representative salaries 0% 0% 85% 15% 100% and expenses Office expenses 0% 25% 35% 40% 100% Administrative expenses 0% 5% 55% 40% 100% Instructions Compute the stage allocation of costs of activity cost pools.
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