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Chapter 7 Exercises a Saved SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company
Chapter 7 Exercises a Saved SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles 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, e cost pool. 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: 20 points eBook Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses Total cost $1,140,000 570,000 450,000 480,000 340,000 640,000 $ 3,620,000 Hint Ask The distribution of resource consumption across the activity cost pools is as follows: Print Pickup and Customer Travel Delivery Service 503 35% 10% 708 5 60% 15% Other Totals 100% 1008 1008 References 25% Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses 908 08 20% 308 108 50% 35% 1008 100% 100% 0% 5% 60% Required: Complete the first stage allocations of costs to activity cost pools. Pickup and Delivery Customer Service Travel Other Totals Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost $ 0 $ 0 $ 0 $ 0 $
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