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Chapter 7 Exercisesi Saved 1 SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company
Chapter 7 Exercisesi Saved 1 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, and number of customers for the Customer Service 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 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses $1,140,000 570,000 450,000 cBook 480,000 340,000 640,000 Hint $3,620,000 Total cost Ask The distribution of resource consumption across the activity cost pools is as follows: Pickup and Print Customer Travel Delivery Service 35% Other 5% Totals 100 Driver and quard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and 50% 108 70% 58 08 25% 100% References 100 60% 158 0% 25% 908 08 10% 1008 expenses office expenses Administrative expenses 100 1008 03 0% 208 308 50% 608 35% 58 Required: Complete the first stage allocations of costs to activity cost pools Pickup and Customer Travel Delivery Totals Service Other Driver and guard wages Vehicle operating expense S 0 0 C Vehicle depreciation 0 Customer representative salaries and expenses 0 Office expenses 0 Administrative expenses 0 O S Total cost S C S C 0 0 S 0
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