Required: Complete the first stage allocations of costs to activity cost pools.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![Driver and guard wages
Vehicle operating expense
Vehicle depreciation
Customer representative salaries and
720,000
280,000
120,000
160,000
expenses
office expenses
Administrative expenses
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.
క క్ల](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5e3b3e47-150d-46c5-9400-ca6bc3f275f7%2F28158b7f-b1e8-441c-aa35-b46267a59c10%2F4ekzq6_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)