SecuriCorp operates a fleet of armored cars that make scheduled pickups and deli
ID: 2563485 • Letter: S
Question
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 Trave 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 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 S 1,100,000 530,000 410,000 440,000 300,000 800,000 Total cost $ 3,380,000 The distribution of resource consumption across the activity cost pools is as follows: and Customer Travel Delivery ServiceOther Totals Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses 1096 0% 0% 596 25% 25% 1096 50% 35% 10096 100% 100% 10096 100% 100% 50% 35% 596 15% 60% 09% 096 ,096 %5% 30% 60% 0% 20% 25% % Required: Complete the first stage allocations of costs to activity cost pools. Pickup and Customer Travel Service Other Totals Driver and guard wages Vehicle operating expense Vehicle depreciation Office expenses Total costExplanation / Answer
Travel Pickup and delivery Customer service Other Total Driver and guard wages 550000 385000 110000 55000 1100000 Vehicle operating expense 371000 26500 0 132500 530000 Vehicle depreciation 246000 61500 0 102500 410000 Customer representative salaries and expense 0 0 396000 44000 440000 Office expenses 0 60000 90000 150000 300000 Administrative expenses 0 30000 360000 210000 600000 Total 1167000 563000 956000 694000 3380000