Question
MobileCash Corporation operates a fleet of armoured cars that make scheduled pickups and deliveries for its customers. The company is implementing an ABC system
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 $ 879,000 296,000 163,000 193,000 46,500 366,000 $1,943,500 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% 40% 15% 10% 100% Vehicle operating expense 75% 5% 0% 20% 100% Vehicle depreciation 70% 10% 0% 20% 100% Customer representative salaries and expenses 0% 0% 80% 20% 100% Office expenses 0% 20% 35% 45% 100% Administrative expenses 0% 10% 50% 40% 100% 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.) Driver and guard wages Vehicle operating expense Vehicle depreciation Office expenses Administrative expenses Customer representative salaries and expenses Total cost Travel Pickup and Delivery Customer Service Other Totals
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