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