Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribedimage text in transcribed

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 vages Vehicle operating expense Vehicle depreciation $1,080,000 510,000 390,000 Customer representative salaries 420,000 and expenses office expenses 280,000 Administrative expenses 580,000 Total cost $3,260,000 The distribution of resource consumption across the activity cost pools is as follows: Travel Pickup and Delivery Driver and guard vages 50% 354 Customer Service 10% Other Totals 58 100% Vehicle operating expense 70% 51 09 25 100% Vehicle depreciation 60% 151 251 100% Customer representative salaries and OR 0% 908 expenses 10% 100% office expenses 08 20% 30% 50% 100% Administrative expenses ON 60% 354 100% and Customer Travel Delivery Service Other Totals Driver and guard wages 50% 354 10% 51 100% Vehicle operating expense 70% 56 08 251 100% Vehicle depreciation 60% 158 0% 251 100% Customer representative salaries and expenses 0% 08 90% 10% 100% office expenses 0% 20% 30% 50% 100% Administrative expenses 01 56 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 Travel Pickup and Delivery Customer Service Other Totals $ 0 0 0 0 0 0 $ $ 05 $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ronald W Hilton

7th Edition

0073022853, 978-0073022857

More Books

Students also viewed these Accounting questions

Question

How does a security interest attach?

Answered: 1 week ago