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SecunCorp 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

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SecunCorp 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 850,000 310,000 190,000 220,000 80,000 350,000 $ 2,068,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Delivery Travel SOX 70% 35% Customer Service 10% 0 OR Other 5% 25% Totals 100% 100% 100% 5% 15% 60% 255 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses OX OX ox OR 20% 5 00% BOX 60% 10% 50 356 100% 100 100%

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