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SecuriCorp operates a fleet ofarmored cars that make scheduled pickups and deliveries in the Los Angeles area, The company is implementing an activity-based costing system
SecuriCorp operates a fleet ofarmored 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 organizationsustaining activity. The following costs will be assigned using the activitybased costing system: Driver and guard wages s 720,000 Vehicle operating expense 230,000 Vehicle depreciation 120,000 Customer representative salaries and expenses 160,000 Office expenses 30,000 Administrative expenses 320,000 Total cost 5 1,630,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Delivery Service other Totals Driver and guard wages 50a 35:; 10% St 100% vehicle operating expense 70% 5% 0% 25% 10015 Vehicle depreciation 60% 15k 0% 25% 100% Customer representative salaries and expenses 0% 0' 903 10' 100% Office expenses 0% 20% 30% 50% 100% Administrative expenses 0% 5' 60% 35% 10075 Required: Complete the rst stage allocations of costs to activity cost poolst Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Ofce expenses Administrative expenses Total cost
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