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Canvas PROBLEM N3 Sure Delivery Company operates a fleet of vans that make scheduled pickups and deliveries in the Cleveland area. The company is implementing

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Canvas PROBLEM N3 Sure Delivery Company operates a fleet of vans that make scheduled pickups and deliveries in the Cleveland area. The company is implementing an ABC system that has four activity cost pools: Travel, Pickup/Delivery. Customer Service, and Other. The activity measures for the cost pools are as follows miles for the Travel, number of pickups and deliveries for Pickup/Delivery, and # of customers for Customer Service. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity-based costing system: Driver and guard wages $650,000 Vehicle operating expense 250,000 Vehicle depreciation 120,000 Customer rep salaries and expenses 180,000 Office expenses 50.000 Administrative expenses 350,000 Total cost $1,600,000 The distribution of resource consumption across the activity cost pools is as follows: Expense Pickup/ Customer Travel Other Totals category Delivery Service Driver/guard 50% 35% 10% 5% 100% wages Vehicle 70% 5 % 0 % 25% 100% operating Vehicle 60% 15% 0 % 25% 100% depreciation Customer rep. 0 % 0 % 90% 10% 100% Office 0% 20% Administrative 0 % 5 % 30% 60% 50% 100% 35% 100% Required: Based on the information above, calculate the following: 1. Total costs to be allocated to each cost pool (Travel, Pickup/Delivery, Customer Service, and Other) 2. Grand total of ALL costs to be allocated to ALL cost pools

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