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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
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 expense Vehicle depreciation $1,160,000 590,000 alaries 500,000 470,000 Customer representative salaries and expenses office expenses Administrative expenses 360,000 660,000 $3,740,000 Total cost The distribution of resource consumption across the activity cost pools is as follows: Pickup and Driver and guard wages Travel 50% Custoner Delivery Service Other 358 10% Totals 58 100% Vehicle operating expense 708 58 0% 25% 100% Vehicle depreciation 608 158 09 25% 100% Customer representative salaries and expenses 08 90% 10% 100% office expenses 08 20% 30% 50% 100% Administrative expenses 08 58 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 Pickup and Customer Travel Delivery Service Other $ Totals 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0 $ 0
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