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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

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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 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 $1,060,000 490,000 370,000 400,000 and expenses Office expenses Administrative expenses Total cost 260,000 560,000 $3,140,000 The distribution of resource consumption across the activity cost pools is as follows Pickup Customer and ivery Service 35 53 15% other 5 25% 258 Totals 100% 100% 100% TravelDel Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and 508 70% 608 10% 0 08 90% 308 10 508 100% 100% 0 expenses Office expenses 20%

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