ces Exercise 7-2 (Algo) First Stage Allocation [LO7-2] 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: Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses Total cost $ 1,240,000 670,000 550,000 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses 580,000 440,000 740,000 $ 4,220,000 The distribution of resource consumption across the activity cost pools is as follows: Travel 50% 70% 60% ox 0% ox Pickup and Customer Service 10% ox 0x Delivery 35% 5% 15% Ox 20% 5% Required: Complete the first stage allocations of costs to activity cost pools. 90% 30% 60% Other 5% 25% 25% 10% 50% 35% Totals 100% 100% 100% 100% 100% 100%
ces Exercise 7-2 (Algo) First Stage Allocation [LO7-2] 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: Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses Total cost $ 1,240,000 670,000 550,000 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses 580,000 440,000 740,000 $ 4,220,000 The distribution of resource consumption across the activity cost pools is as follows: Travel 50% 70% 60% ox 0% ox Pickup and Customer Service 10% ox 0x Delivery 35% 5% 15% Ox 20% 5% Required: Complete the first stage allocations of costs to activity cost pools. 90% 30% 60% Other 5% 25% 25% 10% 50% 35% Totals 100% 100% 100% 100% 100% 100%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 7-2 (Algo) First Stage Allocation [LO7-2]
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:
Driver and guard wages
Vehicle operating expense
Vehicle depreciation
Customer representative salaries and
expenses
office expenses
Administrative expenses.
Total cost
Driver and guard wages
Vehicle operating expense
$ 1,240,000
670,000
550,000
The distribution of resource consumption across the activity cost pools is as follows:
Vehicle depreciation
Customer representative salaries and
expenses
office expenses
Administrative expenses
580,000
440,000
740,000
$ 4,220,000
Travel
50%
70%
60%
ox
0%
ox
Pickup and
Delivery
35%
5%
15%
Ox
20%
5%
Required:
Complete the first stage allocations of costs to activity cost pools.
Customer
Service
10%
ox
0%
90%
30%
60%
Other
5%
25%
25%
10%
50%
Totals
100%
100%
100%
100%
100%
100%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd7b3a5a8-62f8-422a-9e49-23846b36685e%2F2d8084e9-959a-4ac1-86a6-b3efeb3a6b3d%2F59u318u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ces
Exercise 7-2 (Algo) First Stage Allocation [LO7-2]
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:
Driver and guard wages
Vehicle operating expense
Vehicle depreciation
Customer representative salaries and
expenses
office expenses
Administrative expenses.
Total cost
Driver and guard wages
Vehicle operating expense
$ 1,240,000
670,000
550,000
The distribution of resource consumption across the activity cost pools is as follows:
Vehicle depreciation
Customer representative salaries and
expenses
office expenses
Administrative expenses
580,000
440,000
740,000
$ 4,220,000
Travel
50%
70%
60%
ox
0%
ox
Pickup and
Delivery
35%
5%
15%
Ox
20%
5%
Required:
Complete the first stage allocations of costs to activity cost pools.
Customer
Service
10%
ox
0%
90%
30%
60%
Other
5%
25%
25%
10%
50%
Totals
100%
100%
100%
100%
100%
100%
Transcribed Image Text:Required:
Complete the first stage allocations of costs to activity cost pools.
Driver and guard wages
Vehicle operating expense
Vehicle depreciation
Customer representative salaries and expenses
Office expenses
Administrative expenses
Total cost
$
Travel
0
Pickup and
Delivery
$
Customer
Service
10 $
0
$
Other
$
0 $
Totals
0
0
0
0
0
0
0
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