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exercise 7-2 first stage allocation Exercise 7-2 First Stage Allocation [LO7-2] SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in
exercise 7-2 first stage allocation
Exercise 7-2 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: $1,240,000 670,000 550,000 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and 580,000 expenses Office expenses Adeinistrative expenses 440,000 740,000 $ 4,220,000 Total cost es The distribution of resource consumption across the activity cost pools is as follows Pickup Customer and Delivery 35% Other 5t Totals 100% Travel Service 10% Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses 50x 25% 100% 7e% 25% 15% 100% 60% 90% 10% 100% 100% 100% en 20% 30% 50% 64 35% e Required: Complete the first stage allocations of costs to activity cost pools Pickup and Customer Totals Travel Other Delivery Service The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Se 70% Service 10% Other 5% Totals 180% Delivery Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and 35% Book 180% 25% 25% 5% 100% 60% 15% 10% 100% 90% 30% expenses Office expenses Administrative expenses Hint 100% 100% 50% 20% 5% 35% 60% 0% Ask Required: Complete the first stage allocations of costs to activity cost pools. ferences Pickup and Customer Travel Service Other Totals Delivery Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost Step by Step Solution
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