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II. Rogers Corporation operates a fleet of armored cars that make scheduled pick up and deliveries for its customers. The company is implementing ABC
II. Rogers Corporation operates a fleet of armored cars that make scheduled pick up and deliveries for its customers. The company is implementing ABC systems that has four activity cost pools which are seen below in the table. The activity measures are kilometer for the travel cost pool, number of pick ups and deliveries for the pickup and delivery cost pool, and number of customers for the Customer Service Cost Pool. The other pool has no activity measure. The following cost will be assigned using the ABC system. Amt in $ Driver & Guard Wages 840,000 Vehicle Operating Expenses 270,000 Vehicle Depreciation 150,000 Customer Reps salaries and expenses 180,000 Office Expenses 40,000 Administrative Expenses 340,000 TOTAL 1,820,000 The distribution of resource assumption across the activity cost pool is as follows: % Cost pool Trave Pickup & 1 Delivery Custome r Service Other Total S Driver & Guard Wages 40 45 10 5 100 Vehicle Operating Expenses 75 5 0 20 100 Vehicle Depreciation 70 10 0 20 100 Customer Reps salaries and 0 0 85 15 100 expenses Office Expenses 0 25 35 40 100 Administrative Expenses 0 +15 55 40 100 Carry out the first stage allocation of costs to activity pools. (10 Marks)
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