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Iron Company operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based
Iron Company operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based conting 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 conting system Driver and guard wages $1,020,000 Vehicle operating expense 450,000 Vehicle depreciation 330,000 Customer representative salaries and expenses 360,000 Office expenses 220,000 Administrative expenses 520,000 Total cost $2,900,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Delivery Service Other Totals 50% 35% 10% 100% 5% 5% Driver and guard wages 70% 5% 0% % 25% 100% Vehicle operating expense Pickup and Customer Travel Delivery Service Other Total Driver and guard wages 50% 35% 10% 5% 5 100% Vahide operating expense 70% 5% 0% 25% 100% Vehicle depreciation SON 15% 09 25% 100% Customer representative salaries and expenses OS 0% SOS 10% 100% 0% Office expenses 20% 30% 50% 100% 5% 5% 55% 35% 100% Administrative expenses % Required: 1. How much is allocated to the cost poc mocated with the activity tabeled Travel OAS 574,000 $1,023,000 CS 804,000 ODS 1,049.000
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