SecuriCorp operates a fleet of armored implementing an activity-based costing sy

Question

SecuriCorp operates a fleet of armored 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: cars that make scheduled pickups and deliveries in the Los Angeles area. The company is 40 $1,020,000 450,000 330,000 Vehiele depreeiation ve salaries360,000 and expenses office expensers Print 220,000 ve expenses Total cost $2,900,000 The distribution of resource consumption across the activity cost pools is as follows Pickup and Custoner livery Service 358 70% 60% os 0R 1008 100 1001 58 Vehicle operating expense Vehicle depreciation Custoner representative salaries and 25% 0s 208 58 90% 308 101 50% 358 100% 100% 100 oN ON Complete the first stage allocations of costs to activity cost pools

Explanation / Answer

Pickup and Customer Travel Delivery services others Totals Driver and guard wages 510000 357000 102000 51000 1020000 Vehicle operating expense 315000 22500 112500 450000 Vehicle depreciation 198000 49500 82500 330000 Customer representative salaries and expense 324000 36000 360000 Office expense 44000 66000 110000 220000 Administrative expense 26000 312000 182000 520000 Total cost 1023000 499000 804000 574000 2900000

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