80.2K

Verified Solution

Link Copied!

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: . ok Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost $1,120,000 550,000 430,000 460,000 320,000 620,000 $3,500,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Delivery Service Other Driver and guard wages 50% 35% 104 59 Vehicle operating expense 70% 5% 0% Vehicle depreciation 25% 684 154 04 25 Customer representative salaries and expenses 0% 08 90% Office expenses 105 0% 20% 30% 58 Administrative expenses % 5% 688 35% Totals 100 100% 100% 100% 1eos 100% Required: Complete the first-stage allocations of costs to activity cost pools. Pickup and Delivery Customer Service Travel Other Totals Driver and guard wages Vehicle operating expenso Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost

Answer & Explanation Solved by verified expert

See Answer