Exercise 6-2 First Stage Allocation [LO6-2] SecuriCorp operates a fleet of armor
ID: 340692 • Letter: E
Question
Exercise 6-2 First Stage Allocation [LO6-2] SecuriCorp operates a fleet of armored cars that make scheduled pickups and delveries in the Los Angeles area. The company is implementing an activily-based costing systom s cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are and number of customers for the Customer Service cost pool. The Other cost pool has no activity the activity-based costing system miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost po measure because it is an organization-sustaining activity. The following costs will be assigned usin Oriver and guard wages Vehidle depreciation Office expenses Total cost S 880,000 310,000 190,000 220,000 80,000 s 2060,000 The distribution of resource consumption across the activity cost pools is as follows and Customer OtherTotals 5%100% 25% 100% 25% 10% 10% 100% 50% 100% 35% 100% Service Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses 50% 70% 60% 0% 0% 0% 35% 5% 15% 0% 20% 5% 0% 0% 60% Required: Complete the first stage allocations of costs to activity cost pools MacBook Air 10 F5 0 F3Explanation / Answer
Travel Pickup and Delivery Customer services Other Total Driver and guard wages 440000 308000 88000 44000 880000 Vehicle operating expense 217000 15500 0 77500 310000 Vehicle depreciation 114000 28500 0 47500 190000 Customer representative salaries and expenses 0 0 198000 22000 220000 Office expenses 0 16000 24000 40000 80000 Administrative expenses 0 19000 228000 133000 380000 Total 771000 387000 538000 364000 2060000