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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. The

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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. 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: Driver and guard wagen Vehiele operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses Total cost $1,020,000 450,000 330,000 360,000 220,000 $20.000 $2,900,000 and The distribution of resource consumption across the activity cost pools is as follows: Pickup Customer Travel Delivery Service Other Driver and guard wagen 508 356 101 56 Vehicle operating expense 708 58 08 25 Vehicle depreciation 608 15 08 256 Customer representative salaries and expenses 06 01 90 104 office expenses 205 30 500 Administrative expenses 08 55 601 350 Totalo 1008 1004 100% ON 1008 1005 1008 Required: Complete the first stage allocations of costs to activity cost pools. Pickup and Customer The distribution of resource consumption across the activity cost pools is as follows: Travel Pickup and Delivery 350 58 150 Customer Service 108 508 Other 58 258 250 Totals 1001 1001 1004 ON 700 60 00 Driver and guard wages Vehiele operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses O O ON ON 200 50 905 300 600 105 508 358 1008 1000 100 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

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