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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

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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 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 vages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses Total cost $ 1,080,000 510,000 390,000 420,000 280,000 580,000 $ 3,260,000 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% 354 10% 5 100% Vehicle operating expense 70% 54 25 100% Vehicle depreciation 60% 15% 0% 256 100% Customer representative salaries and expenses ON ON 90% 10 100% office expenses ON 20 30% 50% 100% Administrative expenses ON 51 60% 359 100% Required: Complete the first stage allocations of costs to activity cost pools.

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