Answered step by step
Verified Expert Solution
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
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 $ 876,000 294,000 162,000 192,800 46,000 364,000 Total cost $1,934,000 The distribution of resource consumption across the activity cost pools is as follows: Travel 35% 75% 70% Pickup and Customer Delivery Service 40% 15% 5% @% 10% 0% Other 10% 20% 20% Totals 100% 100% 100% Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses % 0% 0% 0% 20% 10% 80% 35% 50% 20% 45% 40% 100% 100% 100% NE Prey 1 of 6 Next > to Travel Delivery Service 35% 40% 15% 75% 5% ex 70% 10% ex Other 10% 20% 20% Totals 189 100% 100% Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses ex 8% @% % 20% 10% 80% 35% 50% 20% 45% 40% 100% 100% 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.) Pickup and Delivery Customer Service Other Totals Travel Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost 0 0 S S 0 $ 0 $ 0 $ 1 of 6 Psey RE Next > hn
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started