Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sustaining activity. I he following costs will be assigned using the activity-based costing system: Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative

Sustaining activity. I he following costs will be assigned using the activity-based costing system:
image

Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost $ 1,200,000 630,000 510,000 540,000 400,000 700,000 $ 3,980,000 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 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: Complete the first stage allocations of costs to activity cost pools. Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Total cost Administrative expenses Travel Pickup and Delivery Customer Service Other Totals $ 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0 $ 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To allocate the total costs to the activity cost pools based on the distribution of resource consump... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

12th Edition

978-0073526706, 9780073526706

More Books

Students also viewed these Accounting questions

Question

e. What problems did consultants encounter?

Answered: 1 week ago

Question

h. How can these problems be overcome?

Answered: 1 week ago

Question

f. What problems did presenters encounter?

Answered: 1 week ago