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 with 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 $900,000 330,000 210,000 248,000 108,800 400,000 $2,180,000 The distribution of resource consumption across the activity cost pools is as follows Pickup and Delivery 35% Customer Service Oriver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Travel 50% 70% 60% Other 5% Totals 100% 100% 100% 186% 100% 100% E
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 with 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 $900,000 330,000 210,000 248,000 108,800 400,000 $2,180,000 The distribution of resource consumption across the activity cost pools is as follows Pickup and Delivery 35% Customer Service Oriver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Travel 50% 70% 60% Other 5% Totals 100% 100% 100% 186% 100% 100% E
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 with 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 nd expenses
Office expenses
Administrative expenses
Total cost
The distribution of resource consumption across the activity cost pools is as follows
Pickup and
Delivery
35%
Driver and guard wages
Vehicle operating expense
Vehicle depreciation
Customer representative salaries and expenses
office expenses
Administrative expens
$ 900.000
330,000
218,000
248,980
100,000
400,880
2,180,000
Driver and guard wages
Vehicle operating expense
Vehicle depreciation
Customer representative salaries and expenses
Office expenses
Administrative expenses
Total cost
Travel
503
Required:
Complete the first stage allocations of costs to activity cost pools.
60%
Travel
Pickup and
Delivery
Customer
Service
Other
100%
B
Totals](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1b815388-426e-431e-83e9-76e412c4fca2%2F64a83da8-da45-49be-9187-13f066e475bf%2Fn0owa19_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 with 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 nd expenses
Office expenses
Administrative expenses
Total cost
The distribution of resource consumption across the activity cost pools is as follows
Pickup and
Delivery
35%
Driver and guard wages
Vehicle operating expense
Vehicle depreciation
Customer representative salaries and expenses
office expenses
Administrative expens
$ 900.000
330,000
218,000
248,980
100,000
400,880
2,180,000
Driver and guard wages
Vehicle operating expense
Vehicle depreciation
Customer representative salaries and expenses
Office expenses
Administrative expenses
Total cost
Travel
503
Required:
Complete the first stage allocations of costs to activity cost pools.
60%
Travel
Pickup and
Delivery
Customer
Service
Other
100%
B
Totals
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