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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 Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost $ 980,000 410,000 290,000 320,000 180,000 480,000 $ 2,660,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Travel 50% 70% 60% Delivery 35% 5% 15% Customer Service 10% 0% Other 5% 25% 25% Totals 100% 100% 100% Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses 336 905 30% 20% 53 10% 589 3546 100% 100% 100% 89 Travel 50% 70% 60% Pickup and Delivery 35% 5% 15% Customer Service 10% 0% Other 5% 25% 25% Totals 100% 100% 100% Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses 0% 20% 90% 30% 60% 10% 50% 35% 100% 100% 100% 0% Required: Complete the first stage allocations of costs to activity cost pools. Pickup and Customer Travel Delivery Service Other Totals Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost
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