Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 quard vages Vehicle operating expense Vehicle depreciation Customer representative salaries and office expenses Administrative expenses Total cost $1,140,000 570,000 450,000 480,000 340,000 640,000 $ 3,620,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Delivery Service Other Totals Driver and guard vages 50% 35 201 54 100% Vehicle operating expense 70% 56 25 100% Vehicle depreciation 60% 15 0 256 100% Customer representative salaries and expenses ON 0% 904 309 100% office expenses ON 20 30 50% 100% Administrative expenses 60% 359 100 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 Travel Pickup and Delivery Customer Service Other Totals
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started