part 1

part 2

SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is Implementing an activity-based costing system that has four activity cost pools Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are miles 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 because it is an organization-sustaining activity. The following costs will be assigned using the activity based costing system Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses Total cost $1,600,000 430,000 310.00 340,000 200,000 500,000 $ 2,780,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Delivery 355 55 15% Customer Service 10 Travel ser 70% 60 Totals 100 Other 55 255 255 10 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses 105 ex OR 90% 3a 100 100 20% 355 Travel sex Pickup and Delivery 35% 5% 15% Customer Service 10% er ex Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses 70% 60% Other 5 25% 25% Totals 100% 100% 100 ex ex es 205 5% 90 30% 60% 105 501 35 100% 1001 100% Required: Complete the first stage allocations of costs to activity cost pools Travel Pickup and Delivery Customer Service Other Total 5 0 0 O Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost 0 0 $ OS 05 0$ 0 05 ureen Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below Activity Cost Pool Activity Measure Caring for lawn Square feet of lawn Caring for garden beds-low maintenance Square feet of low maintenance beds Caring for garden beds-high maintenance Square feet of high maintenance beds Travel to jobs Miles Customer billing and service Number of customers The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows: Estimated Overhead Activity Cost Pool Expected Activity Caring for lawn $ 78,600 170,000 square feet of law Caring for garden beds-low maintenance $ 31,200 26,000 square feet of low maintenance beds Caring for garden beds-high maintenance $ 55,200 20,000 square feet of high maintenance beds Travel to jobs $4,800 17,000 miles Customer billing and service Cost $ 9,900 32 customers Required: Compute the activity rate for each of the activity cost pools (Round your answers to 2 decimal places.) $ 9,90e 32 customers Required: Compute the activity rate for each of the activity cost pools (Round your answers to 2 decimal places.) Activity Rate Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service per square feet of lawn per square feet of low maintenance beds per square feet of high maintenance beds per mile per customer