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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 costing
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 $ 1, 060,000 Vehicle operating expense 490,000 Vehicle depreciation 370,000 Customer representative salaries and expenses 400,000 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% 10% 51 1008 Vehicle operating expense 70 04 251 1008 Vehicle depreciation 604 15% 254 100% Customer representative salaries and expenses 01 904 10% 100% office expenses 201 30% 501 100% Administrative expenses 60% 354 100% Required: Complete the first stage allocations of costs to activity cost pools. Travel Pickup and Customer Totals Delivery Service Other Driver and guard wages $ Vehicle operating expense 0 Vehicle depreciation 0 Customer representative salaries and expenses 0 Office expenses 0 Administrative expenses Total cost $ 0 $ 0 $ 0 $ 0 $ 0
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