Question: Exercise 7-2 (Algo) First Stage Allocation [LO7-2] 2 SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles
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Exercise 7-2 (Algo) First Stage Allocation [LO7-2] 2 SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is points 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: eBook Driver and guard wages $ 980, 000 Vehicle operating expense 410, 000 Vehicle depreciation 290, 000 Customer representative salaries and Hint expenses 320, 000 Office expenses 180, 000 Administrative expenses 480, 000 Total cost $ 2, 660, 000 Print The distribution of resource consumption across the activity cost pools is as follows: References Pickup and Customer Travel Delivery Service Other Totals Driver and guard wages 50% 35% 10% 5% 100% Vehicle operating expense 5% 25% 100% Vehicle depreciation 601% 15% 25% 100% Customer representative salaries and expenses 0% 0% 90% 10% 100%% Office expenses 20% 30% 50% 100% Administrative expenses 5% 60%% 35% 100% Required: Complete the first stage allocations of costs to activity cost pools. Travel Pickup and Customer Delivery Service Other Totals Driver and guard wages
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