SecuriCorp operates a fleet of armored cars that make scheduledpickups and deliveries in the Los Angeles area. The company isimplementing an activity-based costing system that has fouractivity cost pools: Travel, Pickup and Delivery, Customer Service,and Other. The activity measures are miles for the Travel costpool, number of pickups and deliveries for the Pickup and Deliverycost pool, and number of customers for the Customer Service costpool. The Other cost pool has no activity measure because it is anorganization-sustaining activity. The following costs will beassigned using the activity-based costing system:
| |
| Driver and guard wages | $ | 920,000 |
| Vehicle operating expense | | 350,000 |
| Vehicle depreciation | | 230,000 |
| Customer representative salaries and expenses | | 260,000 |
| Office expenses | | 120,000 |
| Administrative expenses | | 420,000 |
| Total cost | $ | 2,300,000 |
|
The distribution of resource consumption across the activitycost 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 costpools.
|
| | | Pickup and | Customer | | | | Travel | Delivery | Service | Other | Totals | | Driver and guard wages | | | | | $0 | | Vehicle operating expense | | | | | 0 | | Vehicle depreciation | | | | | 0 | | Customer representative salaries andexpenses | | | | | 0 | | Office expenses | | | | | 0 | | Administrative expenses | | | | | 0 | | Total cost | $0 | $0 | $0 | $0 | $0 |
|
