Question
Please check my work: SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is
Please check my work:
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$980,000Vehicle operating expense410,000Vehicle depreciation290,000Customer representative salaries and expenses320,000Office expenses180,000Administrative expenses480,000Total cost$2,660,000
The distribution of resource consumption across the activity cost pools is as follows:
Travel Pickup Customer Other Totals and Service Delivery Driver and guard wages 50 % 35 % 10 % 5 % 100 % Vehicle operating expense 70 % 5 % 0 % 25 % 100 % Vehicle depreciation 60 % 15 % 0 % 25 % 100 % Customer representative salaries and expenses 0 % 0 % 90 % 10 % 100 % Office expenses 0 % 20 % 30 % 50 % 100 % Administrative expenses 0 % 5 % 60 % 35 % 100 %
Complete the first stage allocations of costs to activity cost pools.
Travel Delivery Service Other Totals
Driver and guard wages 490000 171500 17150 858 679508
Vehicle operating expense 287000 20500 0 102500 410000
Vehicle depreciation 174000 43500 0 72500 290000
Customer representative salaries and expenses 0 0 288000 32000 320000
Office expenses 0 36000 54000 90000 180000
Administrative expenses 0 24000 288000 168000 480000 0 0
Totals 951000 295500 647150 465858 2359508
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