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SecuriCorp operates a fieet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is Implementing an activity based
SecuriCorp operates a fieet 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 5. 1.020,000 450,000 330,000 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost 360, eee 220,000 520,000 $ 2,9ee, eee The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Delivery Service Driver and guard wages 50% 35% 10% Vehicle operating expense 5% ex Vehicle depreciation 60% 15% O Customer representative salaries and expenses ex ex 90% Office expenses es 20% 30% Administrative expenses es SX Other 5% 25% 25% Totals 100% 100% 70% 100% 103 ses 35% 100% 100% 100% 60% Required: Complete the first stage allocations of costs to activity cost pools Travel Customer Service Pickup and Delivery Totals Other Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salarios and expenses Office expenses Administrative expenses Total cost
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