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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 with 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 $ 940,000 370,000 250,000 280,000 140,000 440,000 $ 2,420,000 The distribution of resource consumption across the activity cost pools is as follows: Customer Service 10% 8% Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Travel 50% 78% 60% 0% 0% Pickup and Delivery 35% 5% Required: Complete the first stage allocations of costs to activity cost pools. 15% 8% 20% 5% 0% 98% 30% 68% 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 with 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 $ 940,000 370,000 250,000 280,000 140,000 440,000 $ 2,420,000 The distribution of resource consumption across the activity cost pools is as follows: Customer Service 10% 8% Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Travel 50% 78% 60% 0% 0% Pickup and Delivery 35% 5% Required: Complete the first stage allocations of costs to activity cost pools. 15% 8% 20% 5% 0% 98% 30% 68% Other 5% 25% 25% 10% 50% 35% Totals 100% 100% 100% 100% 100% 100%

Pkg Acc Infor Systems MS VISIO CD
Pkg Acc Infor Systems MS VISIO CD
10th Edition
ISBN:9781133935940
Author:Ulric J. Gelinas
Publisher:Ulric J. Gelinas
Chapter17: Acquiring And Implementing Accounting Information Systems
Section: Chapter Questions
Problem 1SP
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Exercise 7-2 (Algo) First Stage Allocation [LO7-2] 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 with 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 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Delivery 35% 5% 15% $ 940,000 370,000 250,000 280,000 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses 140,000 440,000 $ 2,420,000 Administrative expenses Total cost Required: Complete the first stage allocations of costs to activity cost pools. Travel 50% 70% 60% 8% 8% 8% Travel 20% 5% Pickup and Delivery Customer Service 10% 0% 81% 98% 30% 60% Customer Service Other 5% 25% 25% 10% 50% 35% Totals 100% 100% 100% 100% 100% 100% Other Totals
Transcribed Image Text:Exercise 7-2 (Algo) First Stage Allocation [LO7-2] 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 with 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 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Delivery 35% 5% 15% $ 940,000 370,000 250,000 280,000 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses 140,000 440,000 $ 2,420,000 Administrative expenses Total cost Required: Complete the first stage allocations of costs to activity cost pools. Travel 50% 70% 60% 8% 8% 8% Travel 20% 5% Pickup and Delivery Customer Service 10% 0% 81% 98% 30% 60% Customer Service Other 5% 25% 25% 10% 50% 35% Totals 100% 100% 100% 100% 100% 100% Other Totals
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