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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 $ 843,000 Vehicle operating expense 272,000 Vehicle depreciation 151,000 Customer representative salaries and expenses 181,000 Office expenses 40,500 Administrative expenses 342,000 Total cost $ 1,829,500 The distribution of resource consumption across the activity cost pools is as follows: Travel Pickup and Delivery Customer Service Other Totals Driver and guard wages 40 % 45 % 10 % 5 % 100 % Vehicle operating expense 70 % 10 % 0 % 20 % 100 % Vehicle depreciation 75 % 5 % 0 % 20 % 100 % Customer representative salaries and expenses 0 % 0 % 85 % 15 % 100 % Office expenses 0 % 20 % 30 % 50 % 100 % Administrative expenses 0 % 5 % 50 % 45 % 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.)
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