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answer this question with explanation only then i will upvote MobileCash Corporation operates a fleet of armored cars that make scheduled pickups and deliveries for
answer this question with explanation only then i will upvote
MobileCash Corporation operates a fleet of armored cars that make scheduled pickups and deliveries for its customers. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and other. The yearly activity measures are 500,000 kilometers for the Travel cost pool, 20,000 pickups and deliveries for the Pickup and Delivery cost pool, and 2,000 customers for the Customer Service cost pool. The Other cost pool has no activity measure. The following costs will be assigned using the activity-based costing system: Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses 995,000 310,000 160,000 190,000 Total cost $ 1,655,000 The distribution of resource consumption across the activity cost pools is as follows: Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries & expenses Travel 35 % 75 % 70 % 0 % Pickup and Delivery 40 % 5 % 10 % 0 % Customer Service 15 % 0 % 0 % 80 % Other Totals 10 % 100 % 20 % 100 % 20 % 100 % 20% 100 % Required: 1) You have carried out the first-stage allocations of costs to activity cost pools. Pickup and Delivery Customer Service Other Totals Travel 149,250 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representation salary & exp. & Totals 348,250 232,500 112.000 0 398,000 15,500 16,000 0 0 99,500 995,000 62,000 310,000 32,000 160,000 38,000 190,000 231,500 1,655,000 0 152,000 301,250 692,750 429,500 n/a Activity level 500,000 20,000 2,000 Km P.U. & del customers 2) Calculate the cost per activity (6 marks) 3) On October 12th MobileCash sent out an armored car to pick up cash for 3 customers. The trip included 1,000 kilometers and 12 pickups. Cost this trip for MobileCash (10marks) Step by Step Solution
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