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Exercise 5-2 (Algo) First Stage Allocation [LO5-2] SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area.
Exercise 5-2 (Algo) First Stage Allocation [LO5-2] 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 arganization-sustaining activity. The following costs will be assigned using the activity-based costing system: Driver and guard wages % 908,000 Vehicle operating expense 339,000 Vehicle depreciation 219,000 Customer representative salaries and exXpenses 246,000 Office expenses 168,008 Administrative expenses 498,600 Total cost $ 2,180,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Delivery Service Other Totals Driver and guard wages 58% 35% 18% 5% 180% Vehicle operating expense 78% 5% a% 25% 188% Vehicle depreciation 6B% 15% a% 25% 1908% Customer representative salaries and expenses 8% a% 98% 16% 160% Office expenses B% 28% 309% 50% 160% Administrative expenses B% 5% 60% 35% 160% Required: Complete the first stage allocations of costs to activity cost pools. Wehicle operating expense Wehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Tntal rnst
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