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:

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 7–6.

Exhibit 7–6:

First Stage Allocation to Activity cost pools

 

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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 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses.. Administrative expenses ... Travel 50% 70% 60% 0% 0% 0% Pickup and Delivery 35% 5% 15% 0% 20% 5% Customer Service 10% 0% 0% 90% 30% 60% Other 5% 25% 25% Totals 100% 100% 100% 10% 100% 100% 100% 50% 35% Production Department indirect factory w 6 Factory equipment depreciation Factory vites Factory building 10 General Administrative Department 11 Admistrative ages and res 12 Office equipment pro 13 Adminstrative building lease Marketing Department 16 Marting wages and salaris 17 Seling expenses 14 19 Tom 20 Customer Product Oper 00000 15,000 125 000 $200,000 $100.000 $50.000 50,000 $6,000 3.000 D Activity Cont Pools Cu $320.000 25 Exhibe 7-6, 6rbe - Design Oster Sve 12.000 20.000 180.000 40.000 0 40.000 0 0 Other 160.000 35.000 25.000$ 60.000 45,000 00:00 120.000 160.000 12.500 22.500 60.000 25,000 600.000 300,000 120 000 80.000 Exhibit 7-5 shows that Customer Orders consume 25% of the resources represented by the $500,000 of indirected factory wages. 25% * $500,000-$125,000 Other entries in the table are computed in a similar fashion. 400.000 50,000 00000 250 000 50.000 (241241 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 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses.. Administrative expenses ... Travel 50% 70% 60% 0% 0% 0% Pickup and Delivery 35% 5% 15% 0% 20% 5% Customer Service 10% 0% 0% 90% 30% 60% Other 5% 25% 25% Totals 100% 100% 100% 10% 100% 100% 100% 50% 35% Production Department indirect factory w 6 Factory equipment depreciation Factory vites Factory building 10 General Administrative Department 11 Admistrative ages and res 12 Office equipment pro 13 Adminstrative building lease Marketing Department 16 Marting wages and salaris 17 Seling expenses 14 19 Tom 20 Customer Product Oper 00000 15,000 125 000 $200,000 $100.000 $50.000 50,000 $6,000 3.000 D Activity Cont Pools Cu $320.000 25 Exhibe 7-6, 6rbe - Design Oster Sve 12.000 20.000 180.000 40.000 0 40.000 0 0 Other 160.000 35.000 25.000$ 60.000 45,000 00:00 120.000 160.000 12.500 22.500 60.000 25,000 600.000 300,000 120 000 80.000 Exhibit 7-5 shows that Customer Orders consume 25% of the resources represented by the $500,000 of indirected factory wages. 25% * $500,000-$125,000 Other entries in the table are computed in a similar fashion. 400.000 50,000 00000 250 000 50.000 (241241

Answer rating: 100% (QA)

Pickup and delivery Cutomer Travel Other Total Service 2... View the full answer