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Exercise 7-2 (Algo) First Stage Allocation [LO7-2] SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles
Exercise 7-2 (Algo) First Stage Allocation [LO7-2] 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 $1,100,000 530,000 410,000 Customer representative salaries and expenses 440,000 Office expenses 300,000 Administrative expenses 600,000 Total cost $ 3,380,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Delivery Service Other Totals Driver and guard vages 50% 351 10% 58 100% Vehicle operating expense 70% 56 ON 251 100% Vehicle depreciation 60% 15 01 25 100% Customer representative salaries and expenses 0% ON 901 10% 1006 office expenses ON 201 30% 50% 100% Administrative expenses 0% 56 60% 351 100% Required: Complete the first stage allocations of costs to activity cost pools. Inriver and mana Travel Pickup and Delivery Customer Service Other Totals no < Prev 17 of 23 MacBook All News > Help
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