EXERCISE $7-2$ First Stage Allocation $SO$ LO$7-2$

$(8)$

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 with 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:

The distribution of resource consumption across the activity cost pools is as follows:

Required:

Complete the first stage allocations of costs to activity cost pools as illustrated in Exhibit $7-5.$