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

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 cost $ 861,000 284,000 157,000 187,000 43,500 354,000 $1,886,500 The distribution of resource consumption across the activity cost pools is as follows: Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Travel 40% 70% 75% 0% 0% 0% Pickup and Delivery 45% 10% 5% 0% 20% 5% son Customer Service 10% 0% 0% 85% 30% 50% Other 5% 20% 20% 15% 50% 45% Totals 100% 100% 100% 100% 100% 100% 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

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

ISE Fundamental Managerial Accounting Concepts

Authors: Thomas P. Edmonds, Christopher Edmonds, Mark A. Edmonds, Philip R. Olds

10th Edition

1265045925, 9781265045920

More Books

Students also viewed these Accounting questions

Question

What is management growth? What are its factors

Answered: 1 week ago