Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mobile Cash Corporation operates a fleet of armoured cars that make scheduled pickups and deliveries for its customers. The company is implementing an ABC system

image text in transcribed
image text in transcribed
Mobile Cash Corporation operates a fleet of armoured cars that make scheduled pickups and deliveries for its customers. The company is implementing an ABC system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and other. The activity measures are kilometres 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. The following costs will be assigned using the ABC system: Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses Total coat $ 846,000 274,000 152,000 182,000 41,000 344,000 $1,839,000 The distribution of resource consumption across the activity cost pools is as follows: Driver and guard vagen Vehiclo operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Pickup and Travel Delivery 401 450 708 100 756 50 08 08 08 200 05 50 Customer Service 101 ou 0 858 303 50. Other 58 208 20$ 150 500 45 Totala 100% 100 1000 1000 1000 1009 Required: Carry out the first stage allocations of costs to activity cost pools. (Do not leave any empty spaces: Input a O wherever it is required.) Required: Carry out the first-stage allocations of costs to activity cost pools. (Do not leave any empty spaces; Input a 0 wherever It Is required.) Travel Pickup and Delivery Customer Service Other Totals Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ebook Principles Of Financial Accounting

Authors: John Wild, Ken Shaw, Barbara Chiappetta

2nd Edition

0077166183, 9780077166182

More Books

Students also viewed these Accounting questions

Question

How would you rate Hsiehs leadership using the Leadership Grid?

Answered: 1 week ago