Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

l Homework AssignxConneat C! Secure I https:/ ps For quick aocess, place your bo

ID: 2539828 • Letter: L

Question

l Homework AssignxConneat C! Secure I https:/ ps For quick aocess, place your bookmarks here on the bookmarks bw import ucation.com/flow/connect.html Chapter 7 Homework Assignment Help Save & ExitSubmit Check my work 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 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, 214 polnts 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 Vehiele operating expenae Vehicle depreciation Custoner representative salariea $1,060,000 490,000 370,000 Print 400,000 260,000 and expenses office expenaes Administrative expenses Total cost 3,140,000 The distribution of resource consumption across the activity cost pools is as follows: pickup Driver and guard vages Vehicle operating expense Vehicle depreciation, Customer representative salaries and Cuatomer Travel Delivery Service Other Totals 04 and 35% 158 508 70 100 258 258 1004 Pros1 of 7EE Next MAR 1 5

Explanation / Answer

Travel Pickup and delivery Customer service Other Total Driver and guard wages 530000 371000 106000 53000 1060000 Vehicle operating expense 343000 24500 0 122500 490000 Vehicle depreciation 222000 55500 0 92500 370000 Customer representative salaries and expense 0 0 360000 40000 400000 Office expenses 0 52000 78000 130000 260000 Administrative expenses 0 28000 336000 196000 560000 Total cost 1095000 531000 880000 634000 3140000