I, product-level. UuICn-ievel, Requiled! Classify each of the activities above as either à organization-sustaining activity. umt-1CVCI, , EXERCISE 7-2 First Stage Allocation [LO7-2] SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveriese :n Angeles area. The company is implementing an activity-based costing system that has four actin. ity 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 Deliven Activity-Based Costing: A Tool to Aid Decision Making cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has activity measure because it is an organization-sustaining activity. The following costs will be 319 assigned using the activity-based costing system: Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses $ 720,000 280,000 120,000 160,000 30,000 located to Office expenses . . . . Administrative expenses Total cost .. 320,000 $1,630,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer d to Travel Delivery Service Other Totals Driver and guard wages Vehicle operating expense Vehicle depreciation .. .. Customer representative salaries and expenses 50% 35% 10% 5% 100% to 70% 5% 0% 25% 100% 60% 15% 0% 25% 100% 0% 0% 90% 10% 100% 100% .. 0% 20% 30% 50% Office expenses .. Administrative expenses 0% 5% 60% 35% 100% Required: Complete the first stage allocations of costs to activity cost pools as illustrated in Exhibit 7-6.
I, product-level. UuICn-ievel, Requiled! Classify each of the activities above as either à organization-sustaining activity. umt-1CVCI, , EXERCISE 7-2 First Stage Allocation [LO7-2] SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveriese :n Angeles area. The company is implementing an activity-based costing system that has four actin. ity 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 Deliven Activity-Based Costing: A Tool to Aid Decision Making cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has activity measure because it is an organization-sustaining activity. The following costs will be 319 assigned using the activity-based costing system: Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses $ 720,000 280,000 120,000 160,000 30,000 located to Office expenses . . . . Administrative expenses Total cost .. 320,000 $1,630,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer d to Travel Delivery Service Other Totals Driver and guard wages Vehicle operating expense Vehicle depreciation .. .. Customer representative salaries and expenses 50% 35% 10% 5% 100% to 70% 5% 0% 25% 100% 60% 15% 0% 25% 100% 0% 0% 90% 10% 100% 100% .. 0% 20% 30% 50% Office expenses .. Administrative expenses 0% 5% 60% 35% 100% Required: Complete the first stage allocations of costs to activity cost pools as illustrated in Exhibit 7-6.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
7-2
![I, product-level.
UuICn-ievel,
Requiled!
Classify each of the activities above as either à
organization-sustaining activity.
umt-1CVCI,
,
EXERCISE 7-2 First Stage Allocation [LO7-2]
SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveriese :n
Angeles area. The company is implementing an activity-based costing system that has four actin.
ity 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 Deliven](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F85e39e9b-3b6a-4fb6-8406-b63a567ff03b%2F4a5c8e23-2af8-4620-a5aa-28421f979059%2Fq7all4b.jpeg&w=3840&q=75)
Transcribed Image Text:I, product-level.
UuICn-ievel,
Requiled!
Classify each of the activities above as either à
organization-sustaining activity.
umt-1CVCI,
,
EXERCISE 7-2 First Stage Allocation [LO7-2]
SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveriese :n
Angeles area. The company is implementing an activity-based costing system that has four actin.
ity 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 Deliven
Transcribed Image Text:Activity-Based Costing: A Tool to Aid Decision Making
cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has
activity measure because it is an organization-sustaining activity. The following costs will be
319
assigned using the activity-based costing system:
Driver and guard wages
Vehicle operating expense
Vehicle depreciation
Customer representative salaries and expenses
$ 720,000
280,000
120,000
160,000
30,000
located to
Office expenses . . . .
Administrative expenses
Total cost ..
320,000
$1,630,000
The distribution of resource consumption across the activity cost pools is as follows:
Pickup
and
Customer
d to
Travel
Delivery
Service
Other
Totals
Driver and guard wages
Vehicle operating expense
Vehicle depreciation .. ..
Customer representative salaries
and expenses
50%
35%
10%
5%
100%
to
70%
5%
0%
25%
100%
60%
15%
0%
25%
100%
0%
0%
90%
10%
100%
100%
..
0%
20%
30%
50%
Office expenses ..
Administrative expenses
0%
5%
60%
35%
100%
Required:
Complete the first stage allocations of costs to activity cost pools as illustrated in Exhibit 7-6.
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