Chap 7, Q1 SecuriCorp operates a fleet of armored cars that make scheduled picku
ID: 2481033 • Letter: C
Question
Chap 7, Q1
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 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:
Complete the first stage allocations of costs to activity cost pools.
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 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:
Explanation / Answer
Travel Pick up Customer service Other Total Driver and guard wages 1200000 600000 [1200000*.50] 420000 [1200000*.35] 120000 [1200000*.10] 60000 [ 1200000*.05] 1200000 Vehicle 630000 441000 31500 0 157500 630000 Vehicle depreciation 510000 306000 76500 0 127500 510000 customer representative 540000 0 0 486000 54000 540000 Office expense 400000 0 80000 120000 200000 400000 Administration expenses 700000 0 35000 420000 245000 700000 Total cost 3980000 1347000 643000 1146000 844000 3980000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.