Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses 720,000 280,000 120,000 160,000 30,000 320,000 Total cost $ 1,630,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Delivery Service other 10% Totals Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses 50% 35% 5% 100% 70% 5% 0% 25% 100% 60% 15% 0% 25% 100% 0% 0% 90% 10% 100% 0% 20% 30% 50% 100% 0% 5% 60% 35% 100% 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 720,000 280,000 120,000 160,000 30,000 320,000 Total cost $ 1,630,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Delivery Service other 10% Totals Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses 50% 35% 5% 100% 70% 5% 0% 25% 100% 60% 15% 0% 25% 100% 0% 0% 90% 10% 100% 0% 20% 30% 50% 100% 0% 5% 60% 35% 100% Required: Complete the first stage allocations of costs to activity cost pools.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below:
Transcribed Image Text:Driver and guard wages
Vehicle operating expense
Vehicle depreciation
Customer representative salaries and
expenses
Office expenses
Administrative expenses
720,000
280,000
120,000
160,000
30,000
320,000
Total cost
$ 1,630,000
The distribution of resource consumption
across the activity cost pools is as follows:
Pickup
and
Customer
Travel Delivery Service
Other
Totals
Driver and guard wages
Vehicle operating expense
Vehicle depreciation
Customer representative salaries
and expenses
Office expenses
Administrative expenses
50%
35%
10%
5%
100%
70%
5%
0%
25%
100%
60%
15%
0%
25%
100%
0%
0%
90%
10%
100%
0%
20%
30%
50%
100%
0%
5%
60%
35%
100%
Required:
Complete the first stage allocations of costs to
activity cost pools.
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