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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 $ 888,000
Vehicle operating expense 302,000
Vehicle depreciation 166,000
Customer representative salaries and expenses 196,000
Office expenses 48,000
Administrative expenses 372,000
Total cost $ 1,972,000
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 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%3
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