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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 po 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 expenses Office expenses Administrative expenses Total cost $ 1,180,000 610,000 490,000 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses 520,000 380,000 680,000 $ 3,860,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Delivery Service 35% 54 Travel 50% 70% 60% 0% 0% 04 15% 0% 20% 5% Required: Complete the first stage allocations of costs to activity cost pools. 10% 0% 0% 90% 30% 60% Other 5% 25% 25% 10% 50% 35% Totals 100% 100% 100% 100% 100% 100%

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 po 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 expenses Office expenses Administrative expenses Total cost $ 1,180,000 610,000 490,000 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses 520,000 380,000 680,000 $ 3,860,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Delivery Service 35% 54 Travel 50% 70% 60% 0% 0% 04 15% 0% 20% 5% Required: Complete the first stage allocations of costs to activity cost pools. 10% 0% 0% 90% 30% 60% Other 5% 25% 25% 10% 50% 35% Totals 100% 100% 100% 100% 100% 100%

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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s 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 expenses Office expenses Administrative expenses Total cost Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses $ 1,180,000 610,000 490,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Service 10% ON 520,000 380,000 680,000 $ 3,860,000 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Travel 50% 70% 60% 0% 0% 0% Delivery 35% 5% 15% Required: Complete the first stage allocations of costs to activity cost pools. Travel 0% 20% 5% 04 90% 30% 60% Other 5% 25% 25% 10% 50% 35% Pickup and Customer Delivery Service Totals 100% 100% 100% 100% 100% 100% Other Totals
Transcribed Image Text:s 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 expenses Office expenses Administrative expenses Total cost Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses $ 1,180,000 610,000 490,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Service 10% ON 520,000 380,000 680,000 $ 3,860,000 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Travel 50% 70% 60% 0% 0% 0% Delivery 35% 5% 15% Required: Complete the first stage allocations of costs to activity cost pools. Travel 0% 20% 5% 04 90% 30% 60% Other 5% 25% 25% 10% 50% 35% Pickup and Customer Delivery Service Totals 100% 100% 100% 100% 100% 100% Other Totals
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