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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
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 Activity-Based Costing: A Tool to Aid Decision Making 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: The distribution of resource consumption across the activity cost pools is as follows: Required: Complete the first stage allocations of costs to activity cost pools as illustrated in Exhibit 76
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