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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 $ 1,220,000 65e,eee 530,000 560.eee 420,000 720,eee $4,100,eee The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Delivery Service Other Driver and guard wages 56C 185 5% Vehicle operating expense 78% 86 25% Vehicle depreciation 6866 15% 25% Customer representative salaries and expenses 98% 18% Office expenses 28% 386 Administrative expenses 5% 6866 35% Totals 100% 188% 100% Sex 100 100% 100 Required: Complete the first stage allocations of costs to activity cost pools. Pickup and Delivery Customer Service Travel Other Totals $ 0 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost 0 0 0 0 0 $ 0 $ 01$ 0 $ 0 $ 0
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