Question
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
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 $1,200,000 630,000 510,000 Customer representative salaries and 540,000 expenses office expenses 400,000 Administrative expenses 700,000 Total cost $ 3,980,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Driver and guard wages Delivery Service other c Totals 50% 35% vehicle depreciation Vehicle operating expense 10% 100% 70% 5% 0% 25% 100% 60% 15% 0% 25% 100% Customer representative salaries and expenses 0% office expenses 90x 10% 100% 0% 20% Administrative expenses 30% 50% 100% 5% 60% 35% 100% Required: Complete the first stage allocations of costs to activity cost pools. Dover and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost Pickup and Travel Delivery Customer Service Other Totals S 0 0 0 0
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