VaultOnWheels Corporation operates a fleet of armored cars that make scheduled pickups and deliveries for its customers

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VaultOnWheels Corporation operates a fleet of armored cars that make scheduled pickups and deliveries for its customers in the Phoenix 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. The following costs will be assigned using the activity-based costing system:
Driver and guard wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 840,000
Vehicle operating expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 270,000
Vehicle depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000
Customer representative salaries and expenses . . . . . . . . . . . 180,000
Office expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340,000
Total cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,820,000
The distribution of resource consumption across the activity cost pools is as follows:

VaultOnWheels Corporation operates a fleet of armored cars that

Required:
Carry out the first-stage allocations of costs to activity cost pools as illustrated in Exhibit8€“5.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Managerial Accounting

ISBN: 9780073526706

12th Edition

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

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