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	$ 1,060,000
Vehicle operating expense	490,000
Vehicle depreciation	370,000
Customer representative salaries and expenses	400,000
Office expenses	260,000
Administrative expenses	560,000
Total cost	$ 3,140,000

The distribution of resource consumption across the activity cost pools is as follows:

 

	Travel	Pickup and Delivery	Customer Service	Other	Totals
Driver and guard wages	50%	35%	10%	5%	100%
Vehicle operating expense	70%	5%	0%	25%	100%
Vehicle depreciation	60%	15%	0%	25%	100%
Customer representative salaries and expenses	0%	0%	90%	10%	100%
Office expenses	0%	20%	30%	50%	100%
Administrative expenses	0%	5%	60%	35%	100%

Complete the first stage allocations of costs to activity cost pools.

	Travel	Pickup  and  Delivery	Customer  Service	Other	Totals
Driver and guard wages					$
Vehicle Operating  Expense
Vehicle Depreciation
Customer representative  salaries and expenses
Office expenses
Administrative expenses
Total Cost	$	$	$	$	$