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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 -

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 with 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
,
120
,
000
Vehicle operating expense
550
,
000
Vehicle depreciation
430
,
000
Customer representative salaries and expenses
460
,
000
Office expenses
320
,
000
Administrative expenses
620
,
000
Total cost $
3
,
500
,
000
The distribution of resource consumption across the activity cost pools is as follows:
Travel Pickup and Delivery Customer Service Other Totals
Driver and guard wages
50
%
35
%
10
%
5
%
100
%
Vehicle operating expense
70
%
5
%
0
%
25
%
100
%
Vehicle depreciation
60
%
15
%
0
%
25
%
100
%
Customer representative salaries and expenses
0
%
0
%
90
%
10
%
100
%
Office expenses
0
%
20
%
30
%
50
%
100
%
Administrative expenses
0
%
5
%
60
%
35
%
100
%
Required:
conplete the first stage allocations of costs to activity cost pools
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