SecuriCorp operates a fieet of armored cars that make scheduled pickups and dellverles 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 deliverles for the Pickup and Dellvery 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-sustalning activity. The following costs will be assigned using the activity-based costing system: $ 1,140, e00 570,e00 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and 45e, e0e expenses Office expenses Administrative expenses 480, e0e 340,e00 648, e00 Total cost $ 3,620, 000 The distribution of resource consumption across the activity cost pools is as follows: Custoner Pickup and Delivery 35% 5% Travel Service Other Totals Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses sex 10x 5% 10e% 100% 7ex ex 25% Gex 15% ex 25% 100% e 9ex 10% 10e% 20 5% ex se% 100% ex Gex 35% 100% Required: Complete the first stage allocations of costs to activity cost pools.
SecuriCorp operates a fieet of armored cars that make scheduled pickups and dellverles 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 deliverles for the Pickup and Dellvery 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-sustalning activity. The following costs will be assigned using the activity-based costing system: $ 1,140, e00 570,e00 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and 45e, e0e expenses Office expenses Administrative expenses 480, e0e 340,e00 648, e00 Total cost $ 3,620, 000 The distribution of resource consumption across the activity cost pools is as follows: Custoner Pickup and Delivery 35% 5% Travel Service Other Totals Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses sex 10x 5% 10e% 100% 7ex ex 25% Gex 15% ex 25% 100% e 9ex 10% 10e% 20 5% ex se% 100% ex Gex 35% 100% Required: Complete the first stage allocations of costs to activity cost pools.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 4CE: Larsen, Inc., produces two types of electronic parts and has provided the following data: There are...
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