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: $ 1,200,000 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses 630,000 510,000 540,000 400,000 700,000 Total cost $3,980,000 The distribution of resource consumption across the activity cost pools is as follows: Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Pickup and Customer Travel Delivery Service Other Totals 50% 35% 10% 5% 100% 70% 5% 0% 25% 100% 60% 15% 0% 25% 100% 0% 0% 90% 10% 100% 0% 20% 30% 50% 100% 0% 5% 60% 35% 100% Required: Complete the first stage allocations of costs to activity cost pools. Pickup Customer and Delivery Travel Service Other Totals Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost $ 0 $ 0 $ 0 $ 0 $ 0

Answer 1

					Pickup	Customer
					and	Service	Other	Totals
				Travel	Delivery
Driver and guard wages				600000	420000	120000	60000	1200000
Vechicle operating expense				441000	31500	0	157500	630000
Vehicle depreciation				306000	76500	0	127500	510000
Customer representative salaries				0	0	486000	54000	540000
and expenses
office expenses				0	80000	120000	200000	400000
Administrative expenses				0	35000	420000	245000	700000
Total cost				1347000	643000	1146000	844000	3980000