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SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles ares. The company is implementing an activity-based costing
SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles ares. 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 organizstion-sustaining activity. The following costs will be assigned using the activity-based costing Driver and guard wages Vehicle operating expense Vehicle deprecistion Customer representative salaries and expenses Office expenses Administrative expenses $ 880,000 310,000 190,000 220,000 80,000 380,000 Total cost $2,060,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup Customer other 100% Service 10% 0% TravelDelivery Driver and guard wages Vehicle operating expense Vehicle deprecistion Customer representative salaries and 35%' 5% 5% 25% 25% 50% elivery 70% 80% 10096 15% 096 20% 10096 1006 1006 096 9096 10% expenses Office expenses Administrative expenses 50% 35% 096 100% 80% Required: Complete the first stage allocations of costs to activity cost pools. Pickup and Customer Travel Delivery Other Totals Driver and guard wages Vehicle operating expense Vehicle depreciation Office expenses Total cost
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