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 guard wages Vehicle operating S Vehicle depreciation Customer representative salaries and expenses Office exREDER Administrative expensi Total $ 880,000 310,000 190,000 220,000 80,000 380,000 $2,060,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Txaxe Delivery Service OtherTarals Driver and guard wages 50% Vehicle operating R 70% 35% 5% Vehicle dertesiation 60% 15% 10% 0% 0% 25% 5% 100% 25% 100% 100% Administrative expenses Customer representative salaries and expenses Office expenses 0% 0% 90% 10% 100% 0% 20% 30% 50% 100% 0% 5% 60% 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 Travel Pickup and Delivery Customer Service Other Totals $ 440,000 $ 308,000 $ 748,000 217,000 15,500 77,500 310,000 114,000 28,500 47,500 190,000 198,000 198,000 40,000 40,000 133,000 133,000 $ 771,000 $ 352,000 $ 198,000 $ 298,000 $1,619,000
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