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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 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 Vehicle operating expense Vehicle depreciation Customer representative salaries and $ 1,060,000 490,000 370,000 400,000 expenses Office expenses Administrative expenses 260,000 560,000 $ 3,140,000 Total cost The distribution of resource consumption across the activity cost pools is as follows: Pickup and Custor Travel Delivery Service Other Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and Totals 50% 35% 10% 5% 100% 70% 5% 0% 25% 25% 100% 60% 15% 0% 100% expenses Office expenses Administrative expenses 0% 0% 90% 10% 100% 0% 20% 30% 50% 100% 100% 0% 5% 60% 35% Required: Complete the first stage allocations of costs to activity cost pools. Pickup and Customer Travel Delivery Service Other Totals Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost 2$ 24

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 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 Vehicle operating expense Vehicle depreciation Customer representative salaries and $ 1,060,000 490,000 370,000 400,000 expenses Office expenses Administrative expenses 260,000 560,000 $ 3,140,000 Total cost The distribution of resource consumption across the activity cost pools is as follows: Pickup and Custor Travel Delivery Service Other Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and Totals 50% 35% 10% 5% 100% 70% 5% 0% 25% 25% 100% 60% 15% 0% 100% expenses Office expenses Administrative expenses 0% 0% 90% 10% 100% 0% 20% 30% 50% 100% 100% 0% 5% 60% 35% Required: Complete the first stage allocations of costs to activity cost pools. Pickup and Customer Travel Delivery Service Other Totals Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost 2$ 24

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter18: Activity-based Costing
Section: Chapter Questions
Problem 3CMA: Young Company is beginning operations and is considering three alternatives to allocate...
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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 Vehicle operating expense Vehicle depreciation Customer representative salaries and $ 1,060,000 490,000 370,000 400,000 expenses Office expenses Administrative expenses 260,000 560,000 Total cost $ 3,140,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Delivery Service Other Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and Totals 50% 35% 10% 5% 100% 70% 5% 0% 25% 100% 60% 15% 0% 25% 100% expenses Office expenses Administrative expenses 0% 0% 90% 10% 50% 100% 0% 20% 30% 100% 100% 0% 5% 60% 35% Required: Complete the first stage allocations of costs to activity cost pools. Pickup and Customer Travel Delivery Service Other Totals Driver and guard wages 24 Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost 0 S
Transcribed Image Text: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 Vehicle operating expense Vehicle depreciation Customer representative salaries and $ 1,060,000 490,000 370,000 400,000 expenses Office expenses Administrative expenses 260,000 560,000 Total cost $ 3,140,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Delivery Service Other Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and Totals 50% 35% 10% 5% 100% 70% 5% 0% 25% 100% 60% 15% 0% 25% 100% expenses Office expenses Administrative expenses 0% 0% 90% 10% 50% 100% 0% 20% 30% 100% 100% 0% 5% 60% 35% Required: Complete the first stage allocations of costs to activity cost pools. Pickup and Customer Travel Delivery Service Other Totals Driver and guard wages 24 Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost 0 S
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