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SecuriCorp operates a fleet of armored cars that make scheduled pickups and dellveries 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 dellveries 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 deliverles 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 oftice expenses dininistrative expenses Total coat $1,060,000 490,000 370,000 400.000 260,000 560,000 $3,140,000 The distribution of resource consumption across the activity cost pools is as follows: Travel 500 700 608 Pickup and Customer Delivery Service 350 108 50 00 158 09 Other 54 254 258 Totals 1008 1000 1008 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expensen Office expenses Administrative expenses 08 09 09 08 200 50 900 300 602 101 501 354 1008 1000 1000 Required: Complete the first stage allocations of costs to activity cost pools. Pickup and Delivery Customer Service Travel Other Totale Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost
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