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: Driver and guard wages $ 1,100,000 Vehicle operating expense 530,000 Vehicle depreciation 410,000 Customer representative salaries and expenses 440,000 Office expenses 300,000 Administrative expenses 600,000 Total cost $ 3,380,000 The distribution of resource consumption across the activity cost pools is as follows: Travel Pickup and Delivery Customer Service Other Totals Driver and guard wages 50 % 35 % 10 % 5 % 100 % Vehicle operating expense 70 % 5 % 0 % 25 % 100 % Vehicle depreciation 60 % 15 % 0 % 25 % 100 % Customer representative salaries and expenses 0 % 0 % 90 % 10 % 100 % Office expenses 0 % 20 % 30 % 50 % 100 % Administrative expenses 0 % 5 % 60 % 35 % 100 % Required: Complete the first stage allocations of costs to activity cost pools.

Respuesta :

Answer::

Given

Travel - Pickup and Delivery - Customer Service - Other - Totals

Driver and guard wages - 50% - 35% - 10% - 5% - 100%

Vehicle operating expense 70 % - 5 % - 0 % - 25 % - 100 %

Vehicle depreciation 60% - 15 % - 0 % - 25 % - 100 %

Customer representative salaries and expenses 0 % - 0 % - 90 % - 10 % - 100 %

Office expenses 0 % - 20 % - 30 % - 50 % - 100 %

Administrative expenses 0 % - 5 % - 60 % - 35 % - 100 %

Driver and guard wages $ 1,100,000

Vehicle operating expense 530,000

Vehicle depreciation 410,000

Customer representative salaries and expenses 440,000

Office expenses 300,000

Administrative expenses 600,000

Total cost $ 3,380,000

The first stage allocations of costs to activity cost pools are as follows:

Expenses - Travel - Pickup and Delivery - Customer Service - Other - Totals

Driver and guard wages $550,000 - $385,000 - $ 110,000 - $ 55,000 - $ 1,100,000

Vehicle operating expense $371,000 - $ 26,500 - $0 - $ 132,600 - $530,000

Vehicle depreciation $246,000 - $61,500 - $0 - $102,500 - $410,000

Customer representative salaries and expenses $0 - $0 - $396,000 - $ 44,000 - $ 440,000

Office expenses $0- $ 60,000 - $ 90,000 - $ 150,000 - $ 300,000

Administrative expenses $0 - $ 30,000 - $360000 - $210,000 - $ 600,000