Question

Chapter 7 HW Set 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 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 170.00 book Driver and guard was Vehicle operating expense vehicle depreciation Customer representative salaries and office wenses Kaministrative expenses Total con . The distribution of resource consumption across the activity cost pools is as follows and Customer TV Total Driver and are Vehicle operating experte Vehicle Customer representatives office Anistratives Required Complete the best stage icons of costs to cost pools Wege > o HI Type here to search X B 7 2 8 5 1 3 4 6 W Q E R Y U Tab А S D IL Capslk SY B NM

Answer 1

Travel

Driver and guard wages = 860,000*50% = $430,000

Vehicle operating expenses = 290,000*70% =$203,000

Vehicle depreciation = 170,000*60= $102,000

Customer representative salary expense = 200,000*0 = 0

Office expense = 60,000*0 =0

Administrative expense = 360,000*0 =0

Pickup and delivery

Driver and guard wages = 860,000*35% =$301,000

Vehicle operating expenses = 290,000*5%= $14,500

Vehicle depreciation = 170,000*15%=$25,500

Customer representative salary expense = 200,000*0=0

Office expense = 60,000*20%=$12,000

Administrative expense = 360,000*5% =$18,000

Customer service

Driver and guard wages = 860,000*10%=$86,000

Vehicle operating expenses = 290,000*0=0

Vehicle depreciation = 170,000*0=0

Customer representative salary expense = 200,000*90%=$180,000

Office expense = 60,000*30%=$18,000

Administrative expense = 360,000*60%=$216,000

Other

Driver and guard wages = 860,000*5%=$43,000

Vehicle operating expenses = 290,000*25%=$72,500

Vehicle depreciation = 170,000*25%=$42,500

Customer representative salary expense = 200,000*10%=$20,000

Office expense = 60,000*50%=$30,000

Administrative expense = 360,000*35% =$126,000

Total

Driver and guard wages = 430,000 + 301,000 + 43,000 + 86,000 = $860,000

Vehicle operating expenses = 203,000 + 14,500 + 72,500 = $290,000

Vehicle depreciation = 102,000 + 25,500 + 42,500 = $170,000

Customer representative salary expense = 180,000 + 20,000 = $200,000

Office expense = 12,000 + 18,000 + 30,000 = $60,000

Administrative expense = 18,000 + 216,000 + 126,000 = $360,000

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