Exercise 7-2 (Algo) First Stage Allocation (L07-2) 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 wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost $1,220,000 650,000 530,000 560,000 420,000 720,000 $4,100,000 The distribution of resource consumption across the activity cost pools is as follows: Travel 504 789 60% Pickup and Customer Delivery Service 35% 104 54 84 0% Other 5 25% 254 Totals 100% 100% 100% 15% Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses 0% 0% 0% 04 20% 904 30% 604 104 50% 35% 100% 100% 100% 5% Required: Complete the first stage allocations of costs to activity cost pools. The distribution of resource consumption across the activity cost pools is as follows: Pickup and Delivery 35% 5% 15% Customer Service 10% Travel 50% 70% 60% Other 5% 25% 25% Totals 100% 100% 100% 0% Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses 09 0% 0% 0% 20% 5% 90% 30% 60% 104 50% 35% 100% 100% 100 Required: Complete the first stage allocations of costs to activity cost pools. Pickup and Delivery Customer Service Other Totals Travel Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost