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MobileCash Corporation operates a fleet of armoured cars that make scheduled pickups and deliveries for...

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Accounting

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MobileCash Corporation operates a fleet of armoured cars that make scheduled pickups and deliveries for its customers. The company is implementing an ABC system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other The activity measures are kilometres 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. The following costs will be assigned using the ABC system Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses 864,000 286,000 158,000 188,000 44,000 356,000 Total cost $1,896,00e The distribution of resource consum ption across the activity cost pools is as follows Pickup and Customer Travel Delivery Service Other Totals 20 100s 1e01 Driver and guard wages Vehicle operating expense Vehicle depreciation Custoner representative salaries 70% 720 l 0%20% 10 85% 15% 100%

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