Question
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
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 guard wages $940,000 Vehicle operating expense 370,000 Vehicle depreciation 250,000 Customer representative salaries and expenses 280,000 Office expenses 140,000 Administrative expenses 440,000 $ 2,420,000 Total cost The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer S Travel Delivery Service Other Totals Driver and guard wages 50% 35% 10% Vehicle operating expense 70% 5% Vehicle depreciation 60% 15% Customer representative salaries and expenses 0% 0% 90% Office expenses 0% 20% 30% Administrative expenses 0% 5% 60% 666666 5% 100% 25% 100% 25% 100% 10% 100% 50% 100% 35% 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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