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 $ 860,000 290,000 170,000 200,000 60,000 360,000 $ 1,940,000 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 50% 35% 10% 5% 100% Vehicle operating expense 70% 5% 8% 25% 100% Vehicle depreciation 60% 15% 0% 25% 100% Customer representative salaries and expenses 0% ex 98% 10% 100% Office expenses 20% 30% 50% 100% Administrative expenses % 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 Total cost S Travel Pickup and Delivery Customer Service Other Totals
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 $ 860,000 290,000 170,000 200,000 60,000 360,000 $ 1,940,000 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 50% 35% 10% 5% 100% Vehicle operating expense 70% 5% 8% 25% 100% Vehicle depreciation 60% 15% 0% 25% 100% Customer representative salaries and expenses 0% ex 98% 10% 100% Office expenses 20% 30% 50% 100% Administrative expenses % 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 Total cost S Travel Pickup and Delivery Customer Service Other Totals
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
![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
$ 860,000
290,000
170,000
200,000
60,000
360,000
$ 1,940,000
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
50%
35%
10%
5%
100%
Vehicle operating expense
70%
5%
8%
25%
100%
Vehicle depreciation
60%
15%
0%
25%
100%
Customer representative salaries and expenses
0%
ex
98%
10%
100%
Office expenses
20%
30%
50%
100%
Administrative expenses
%
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
Total cost
S
Travel
Pickup and
Delivery
Customer
Service
Other
Totals](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F82a55757-d2b3-426e-a054-70e5fa89af6d%2F73a1a57b-5474-47bd-8787-7e48e82fec8f%2Ffbvkl2xd_processed.png&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 and expenses
Office expenses
Administrative expenses
Total cost
$ 860,000
290,000
170,000
200,000
60,000
360,000
$ 1,940,000
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
50%
35%
10%
5%
100%
Vehicle operating expense
70%
5%
8%
25%
100%
Vehicle depreciation
60%
15%
0%
25%
100%
Customer representative salaries and expenses
0%
ex
98%
10%
100%
Office expenses
20%
30%
50%
100%
Administrative expenses
%
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
Total cost
S
Travel
Pickup and
Delivery
Customer
Service
Other
Totals
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education