Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

VaultOnWheels Corporation operates a fleet of armored cars that make scheduled pickups and deliveries for its customers in the Phoenix area. The company is implementing

VaultOnWheels Corporation operates a fleet of armored cars that make scheduled pickups and deliveries for its customers in the Phoenix 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 $ 1,100,000
Vehicle operating expense 530,000
Vehicle depreciation 410,000
Customer representative salaries and expenses 440,000
Office expenses 300,000
Administrative expenses 600,000
Total cost $ 3,380,000

The distribution of resource consumption across the activity cost pools is as follows:

Travel Pickup and Delivery Customer Service Other Totals
Driver and guard wages 40 % 45 % 10 % 5 % 100 %
Vehicle operating expense 75 % 5 % 0 % 20 % 100 %
Vehicle depreciation 70 % 10 % 0 % 20 % 100 %
Customer representative salaries and expenses 0 % 0 % 85 % 15 % 100 %
Office expenses 0 % 25 % 35 % 40 % 100 %
Administrative expenses 0 % 5 % 55 % 40 % 100 %

Required:

Complete the first-stage allocations of costs to activity cost pools. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

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 $ $ $ $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Automotive Process Audits Preparations And Tools Practical Quality Of The Future

Authors: D. H. Stamatis

1st Edition

036775939X, 978-0367759391

More Books

Students also viewed these Accounting questions