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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 580,000 440,000 740,000 $ 4,220,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Delivery 35X 5% 15% Administrative expenses Total cost Driver and guard wages Vehicle operating expense $ 1,240,000 670,000 550,000 Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses Travel 50% 70% 60% ox 0% 0% Ox 20% 5% Required: Complete the first stage allocations of costs to activity cost pools. Customer Service 10% ox Ox 90% 30% 60% Other 5% 25% 25% 10% 50% Totals 100% 100% 100% 100% 100% 100%

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 580,000 440,000 740,000 $ 4,220,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Delivery 35X 5% 15% Administrative expenses Total cost Driver and guard wages Vehicle operating expense $ 1,240,000 670,000 550,000 Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses Travel 50% 70% 60% ox 0% 0% Ox 20% 5% Required: Complete the first stage allocations of costs to activity cost pools. Customer Service 10% ox Ox 90% 30% 60% Other 5% 25% 25% 10% 50% Totals 100% 100% 100% 100% 100% 100%

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 4BE: Activity-based costing: selling and administrative expenses Jungle Junior Company manufactures and...
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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: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%
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