Question

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: Driver and guard wages Vehicle operating expense Vehiele depreciation Customer representative salaries and expenses office expenses Administrative expenses Total cost $ 940,000 370,000 250,000 280,000 140,000 440.000 $2,420,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Delivery 358 Customer Service Travel 508 Other 105 Totals 1001 1000 1001 708 58 08 258 158 03 258 Driver and quard wages Vehicle operating expense Véhicle depreciation Customer representative salaries and expenses office expenses Administrative expenses ON 08 903 100 201 300 SO 00 00 1001 1005 1000 50 600 356 Required: Complete the first-stage allocations of costs to activity cost pools. Pickup and Delivery Customer Service Travel Other Totals Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost $ 0 $ 0S 0S 0 $

Answer 1

Travel Other Totals Pickup and Delivery 329000 18500 37500 Customer Serive 940001 0 470000 259000 150000 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and exenses Office expenses Administrative expenses Total cost 47000 940000 92500 370000 62500 250000 28000 280000 70000 140000 154000 440000 454000 2420000 252000 42000 264000 652000 28000 22000 435000 879000 Allocation of cost = Individual cost * Respective percentage of cost