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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.

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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 $ 900,000 330,000 210,000 240,000 100,000 400,000 $2,180,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Delivery Service Other Driver and quard wages 508 35 108 58 Vehicle operating expense 700 58 08 250 Vehicle depreciation 601 150 09 258 Customer representative salaries and expenses 08 0 90 100 Office expenses 08 308 503 Totals 1008 1009 100% 1008 1000 201 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Delivery Service Other Driver and guard wages 50 358 101 58 Vehicle operating expense 700 58 OR 258 Vehicle depreciation 604 158 08 256 Customer representative salaries and expenses 08 908 10 Office expenses 00 208 300 50% Administrative expenses 05 5+ 608 358 Totals 1008 1008 100 06 1008 1008 1008 Required: Complete the first stage allocations of costs to activity cost pools. Pickup and Delivery Customer Service Travel Totals Other $ Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost OOOOOOO $ $ O $ 0 $ 0 $

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