( Ces SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in...
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( Ces 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 Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Service 10% 0% 0% $ 1,080,000 510,000 390,000 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses 420,000 280,000 580,000 $ 3,260,000 Administrative expenses Total cost Travel 50% 70% 60% 0% 0% 0% Required: Complete the first stage allocations of costs to activity cost pools. Delivery 35% 5% 15% Travel 0% 20% 5% Pickup and Delivery 90% 30% 60% Other 5% 25% 25% 10% 50% 35% Customer Service Totals 100% 100% 100% 100% 100% 100% Other Totals ( Ces 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 Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Service 10% 0% 0% $ 1,080,000 510,000 390,000 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses 420,000 280,000 580,000 $ 3,260,000 Administrative expenses Total cost Travel 50% 70% 60% 0% 0% 0% Required: Complete the first stage allocations of costs to activity cost pools. Delivery 35% 5% 15% Travel 0% 20% 5% Pickup and Delivery 90% 30% 60% Other 5% 25% 25% 10% 50% 35% Customer Service Totals 100% 100% 100% 100% 100% 100% Other Totals
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Answer To complete the first stage allocations of costs to activity cost pools we will apply the dis... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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