Travel	Pickup and Delivery	Customer Service	Other	Totals
Driver and guard wages..........................
Vehicle operating expense......................
Vehicle depreciation................................
Customer representative salaries and expenses..............................................
Office expenses......................................
Administrative expenses.........................
Total cost................................................	$628,000	$306,000	$417,000	$279,000	$1,630,000

Each entry in the table is derived by multiplying the total cost for the cost category by the percentage taken from the table below that shows the distribution of resource consumption:

	Travel	Pickup and Delivery	Customer Service	Other	Totals
Driver and guard wages..........................
Vehicle operating expense......................
Vehicle depreciation................................
Customer representative salaries and expenses..............................................
Office expenses......................................
Administrative expenses.........................

EXERCISE 7-2 First Stage Allocation LO7-2 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 activ- ity 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 ...... $ 720,000 280,000 120,000 160,000 30,000 320,000 $1,630,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Delivery Travel Customer Service Other Totals 35% 50% 70% 60% 5% 10% 0% 0% 5% 25% 25% 100% 100% 100% 15% Driver and guard wages ..... Vehicle operating expense .... Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses ..... 0% 0% 90% 30% 60% 20% 5% 10% 50% 35% 100% 100% 100% 0% Required: Complete the first stage allocations of costs to activity cost pools as illustrated in Exhibit 7-6