Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 $ 891,000 Vehicle operating expense 304,000 Vehicle depreciation 167,000 Customer representative salaries and expenses 197,000 Office expenses 48,500 Administrative expenses 374,000 Total cost $1,931,500 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Delivery Service Other Total 5 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 Customer representative salaries and expenses Ofce 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_2

Step: 3

blur-text-image_3

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

Accounting Principles Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

8th Canadian Edition

111950242X, 1-119-50242-5, 978-1119502425

More Books

Students also viewed these Accounting questions