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MobileCash Corporation operates a fleet of armoured cars that make scheduled pickups and deliveries for its customers. The company is Implementing an ABC system that
MobileCash 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 $ 500,000 310,000 170,000 200,000 50,000 300,000 $2,010,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Delivery Service Other Totals Driver and guard wages 35% 45% 15% 5% Le Vehicle operating expense 65% 10% en 10 Vehicle depreciation 658 10% 0% 25% 2004 Customer representative salaries and expenses 75% 258 100% Office expenses EST 35% 40% 1001 Administrative expenses ex 45% A 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) Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost Travel Pickup and Delivery Customer Service Other Totals
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