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:
Chapter 7 Homework Assignment i Saved Help Save & Exit Submit Check my work Exercise 7-2 First Stage Allocation [LO7-2] 3.2 SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The points 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 eBook assigned using the activity-based costing system: Driver and guard wages $ 1, 060, 000 Print Vehicle operating expense 490 , 000 Vehicle depreciation 370, 000 Customer representative salaries and expenses 400 , 000 References Office expenses 260 , 000 Administrative expenses 560 , 000 Total cost $3, 140, 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 wages 50% 35% 108 100% Vehicle operating expense 708 5 8 08 258 1008 Vehicle depreciation 60% 158 08 25% 1008 Customer representative salaries and expenses 0 8 08 908 108 100% office expenses 0 8 20% 30% 508 100 Administrative expenses 08 5 % 60% 35% 100% Required: Complete the first stage allocations of costs to activity cost pools. Pickup and CustomerRequired: 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 Oice expenses Administrative expenses ____ Total cost