EXERCISE 7-2 First Stage Allocation (L07-2] SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Angeles area. The company is implementing an activity-based costing system that has four ity cost pools: Travel, Pickup and Delivery. Customer Service, and Other. The activity me are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delive iveries in the Los hat has four activ. number of customers for the Customer Service cost pool. The Other cost pool has measure because it is an organiza organization-sustaining activity. The following costs will be ing the activity-based costing system: a pool, and numb mo activity meas assigned using the Driver and guard wages Vehicle operating expense. Vehicle depreciation Customer representative salaries and expenses. Office expenses ...... Administrative expenses.. Total cost ....... $ 720,000 280,000 120,000 160,000 30,000 320,000 $1,630,000 stribution of resource consumption across the activity cost pools is as follows: The distribution of ra Travel 50% 70% 60% Pickup and Delivery 35% 5% 15% Customer Service 10% 0% 0% Other 5% 25% 25% Totals 100% 100% 100% Driver and guard wages Vehicle operating expense .... Vehicle depreciation ......... Customer representative salaries and expenses ......... Office expenses .............. Administrative expenses ......... 0% 0% 0% 20% 5% 90% 30% 60% 10% 50% 35% 100% 100% 100% 0% Required: Complete the first stage allocations of costs to activity cost pools as illustrated in Exhibit 76