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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 $ 1,140,000 Vehicle operating expense 570,000 Vehicle depreciation 450,000 Customer representative salaries and expenses 480,000 office expenses 340,000 Administrative expenses 640,000 Total cost $ 3,620,000 sas The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Delivery Service Driver and guard wages 35 104 Vehicle operating expense 709 54 ON 609 Vehicle depreciation 159 ON Customer representative salaries and 90% expenses 20% 04 301 Office expenses 604 5% Administrative expenses Other 56 254 254 Totals 100 1001 100% tos 05 50 100 100% 1004 355 os Required: Complete the first stage allocations of costs to activity cost pools, Required: Complete the first stage allocations of costs to activity cost pools Travel Pickup and Delivery Customer Service Other Total $ Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost $ 0$ 0 $ 05 0 $
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