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2-MobileCash Corporation operates a fleet of armoured cars that make scheduled pickups and deliveries for its customers The company is implementing an ABC system that
2-MobileCash Corporation operates a fleet of armoured cars that make scheduled pickups and deliveries for its customers The company is implementing an ABC system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are kilometers for the travel cost pool, number of pickups and deliveries for the pickup and delivery cost pool, and number of customers for the custemer service cost pool. The other cost pool has no activity measure The following costs will be assigned using the ABC system 840,000- Driver and guard wages 270,000 Vehicle operating expense 150,000 vehicle depreciation 180,000 Customer representative salaries and expenses 40,000 Office expenses 340,000 Administrative expenses 1820,000- Total cost The distribution of resource consumption across the activity cost pools is as follows: Customer Picup & other Totals Service Travel delivery 100% 5% Driver & guard wages 10% 40% 45% 100 % 0 % 20% 75% 5% Vehicle operating expense 20 % 100 % 10% o% 70% Vehicle depreciation Customer representative 15 % 85 % 100% 0% Salaries & expenses 0% 100 % 25 % 35 % 40% Office expenses 0% 40 % 100% 5% 55% 0% Administrative expenses Required: Carry out the first-stage allocations of costs to activity cost pools Other Totals Customer Service Travel /Pickup & delivery ax KA Driver & guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries & expenses Office expenses Administrative expenses Total cost
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