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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
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 quard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses Total cost $ 920,000 350,000 230,000 160,000 120,000 420,000 $2,300,000 The distribution of resource consumption across the activity cost pools is as follows: Travel Pickup and Customer Delivery Service Other Totals Driver and guard wages 50% 358 10% 5% 100% Vehicle operating expense 70% 5% 258 100% Vehicle depreciation 60% 158 0% 25% 100% Customer representative salaries and expenses 0% 08 90% 10% 100% Office expenses 0% 20% 30% 50% 100% Administrative expenses 0% 58 608 358 100% The distribution of resource consumption across the activity cost pools is as follows: Travel Pickup and Customer Delivery Service Other Totals Driver and guard wages 50% 358 10% 58 100% Vehicle operating expense 70% 58 0% 25% 100% Vehicle depreciation 608 158 08 25% 100% Customer representative salaries and expenses 08 0% 908 108 100% Office expenses 08 208 30% 501 100% Administrative expenses 0% 58 60% 354 100% Required: Complete the first stage allocations of costs to activity cost pools. Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost Pickup and Travel Delivery Customer Service Other Totals
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