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I, product-level. UuICn-ievel, Requiled! Classify each of the activities above as either à organization-sustaining activity. umt-1CVCI, , EXERCISE 7-2 First Stage Allocation [LO7-2] SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveriese :n Angeles area. The company is implementing an activity-based costing system that has four actin. ity 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 Deliven Activity-Based Costing: A Tool to Aid Decision Making cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has activity measure because it is an organization-sustaining activity. The following costs will be 319 assigned using the activity-based costing system: Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses $ 720,000 280,000 120,000 160,000 30,000 located to Office expenses . . . . Administrative expenses Total cost .. 320,000 $1,630,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer d to Travel Delivery Service Other Totals Driver and guard wages Vehicle operating expense Vehicle depreciation .. .. Customer representative salaries and expenses 50% 35% 10% 5% 100% to 70% 5% 0% 25% 100% 60% 15% 0% 25% 100% 0% 0% 90% 10% 100% 100% .. 0% 20% 30% 50% Office expenses .. Administrative expenses 0% 5% 60% 35% 100% Required: Complete the first stage allocations of costs to activity cost pools as illustrated in Exhibit 7-6.

I, product-level. UuICn-ievel, Requiled! Classify each of the activities above as either à organization-sustaining activity. umt-1CVCI, , EXERCISE 7-2 First Stage Allocation [LO7-2] SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveriese :n Angeles area. The company is implementing an activity-based costing system that has four actin. ity 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 Deliven Activity-Based Costing: A Tool to Aid Decision Making cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has activity measure because it is an organization-sustaining activity. The following costs will be 319 assigned using the activity-based costing system: Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses $ 720,000 280,000 120,000 160,000 30,000 located to Office expenses . . . . Administrative expenses Total cost .. 320,000 $1,630,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer d to Travel Delivery Service Other Totals Driver and guard wages Vehicle operating expense Vehicle depreciation .. .. Customer representative salaries and expenses 50% 35% 10% 5% 100% to 70% 5% 0% 25% 100% 60% 15% 0% 25% 100% 0% 0% 90% 10% 100% 100% .. 0% 20% 30% 50% Office expenses .. Administrative expenses 0% 5% 60% 35% 100% Required: Complete the first stage allocations of costs to activity cost pools as illustrated in Exhibit 7-6.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 23E: Refer to the data in Exercise 7.22. The company has decided to simplify its method of allocating...
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I, product-level. UuICn-ievel, Requiled! Classify each of the activities above as either à organization-sustaining activity. umt-1CVCI, , EXERCISE 7-2 First Stage Allocation [LO7-2] SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveriese :n Angeles area. The company is implementing an activity-based costing system that has four actin. ity 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 Deliven
Transcribed Image Text:I, product-level. UuICn-ievel, Requiled! Classify each of the activities above as either à organization-sustaining activity. umt-1CVCI, , EXERCISE 7-2 First Stage Allocation [LO7-2] SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveriese :n Angeles area. The company is implementing an activity-based costing system that has four actin. ity 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 Deliven
Activity-Based Costing: A Tool to Aid Decision Making cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has activity measure because it is an organization-sustaining activity. The following costs will be 319 assigned using the activity-based costing system: Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses $ 720,000 280,000 120,000 160,000 30,000 located to Office expenses . . . . Administrative expenses Total cost .. 320,000 $1,630,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer d to Travel Delivery Service Other Totals Driver and guard wages Vehicle operating expense Vehicle depreciation .. .. Customer representative salaries and expenses 50% 35% 10% 5% 100% to 70% 5% 0% 25% 100% 60% 15% 0% 25% 100% 0% 0% 90% 10% 100% 100% .. 0% 20% 30% 50% Office expenses .. Administrative expenses 0% 5% 60% 35% 100% Required: Complete the first stage allocations of costs to activity cost pools as illustrated in Exhibit 7-6.
Transcribed Image Text:Activity-Based Costing: A Tool to Aid Decision Making cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has activity measure because it is an organization-sustaining activity. The following costs will be 319 assigned using the activity-based costing system: Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses $ 720,000 280,000 120,000 160,000 30,000 located to Office expenses . . . . Administrative expenses Total cost .. 320,000 $1,630,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer d to Travel Delivery Service Other Totals Driver and guard wages Vehicle operating expense Vehicle depreciation .. .. Customer representative salaries and expenses 50% 35% 10% 5% 100% to 70% 5% 0% 25% 100% 60% 15% 0% 25% 100% 0% 0% 90% 10% 100% 100% .. 0% 20% 30% 50% Office expenses .. Administrative expenses 0% 5% 60% 35% 100% Required: Complete the first stage allocations of costs to activity cost pools as illustrated in Exhibit 7-6.
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