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SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliverles in the Los Angeles area. The company is implementing an activity-based costing
SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliverles in the Los Angeles area. The company is implementing an activity-based costing system that has four actlvity cost pools: Travel Pickup and Dellvery, 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 actlvity-based costing system: Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries $ 840,000 270,000 150,000 180,000 and expenses Office expenses Administrative expenses Total cost 40,000 340,000 $1,820,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer vice TravelDelivery Ser 10 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and 502 70 608 Other 52 25% 25% Totals 1003 1002 1002 353 52 152 902 302 608 102 50 353 1008 1002 1002 08 expenses Office expenses Administrative expenses 202 52 Requirec Complete the first stage allocations of costs to activity cost pools. up a Travel Delivery Service Other Totals Driver and guard wages Vehicle operating expense Vehicle depreciation salaries and expenses Office expenses Total cost
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