Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 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 $ 1,060,000 490,000 370,000 400,000 expenses Office expenses Administrative expenses 260,000 560,000 $ 3,140,000 Total cost The distribution of resource consumption across the activity cost pools is as follows: Pickup and Custor Travel Delivery Service Other Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and Totals 50% 35% 10% 5% 100% 70% 5% 0% 25% 25% 100% 60% 15% 0% 100% expenses Office expenses Administrative expenses 0% 0% 90% 10% 100% 0% 20% 30% 50% 100% 100% 0% 5% 60% 35% Required: Complete the first stage allocations of costs to activity cost pools. 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 Total cost 2$ 24

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 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 $ 1,060,000 490,000 370,000 400,000 expenses Office expenses Administrative expenses 260,000 560,000 $ 3,140,000 Total cost The distribution of resource consumption across the activity cost pools is as follows: Pickup and Custor Travel Delivery Service Other Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and Totals 50% 35% 10% 5% 100% 70% 5% 0% 25% 25% 100% 60% 15% 0% 100% expenses Office expenses Administrative expenses 0% 0% 90% 10% 100% 0% 20% 30% 50% 100% 100% 0% 5% 60% 35% Required: Complete the first stage allocations of costs to activity cost pools. 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 Total cost 2$ 24

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%
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 $ 1,060,000 490,000 370,000 400,000 expenses Office expenses Administrative expenses 260,000 560,000 Total cost $ 3,140,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Delivery Service Other Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and Totals 50% 35% 10% 5% 100% 70% 5% 0% 25% 100% 60% 15% 0% 25% 100% expenses Office expenses Administrative expenses 0% 0% 90% 10% 50% 100% 0% 20% 30% 100% 100% 0% 5% 60% 35% Required: Complete the first stage allocations of costs to activity cost pools. Pickup and Customer Travel Delivery Service Other Totals Driver and guard wages 24 Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost 0 S
Transcribed Image Text: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 $ 1,060,000 490,000 370,000 400,000 expenses Office expenses Administrative expenses 260,000 560,000 Total cost $ 3,140,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Delivery Service Other Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and Totals 50% 35% 10% 5% 100% 70% 5% 0% 25% 100% 60% 15% 0% 25% 100% expenses Office expenses Administrative expenses 0% 0% 90% 10% 50% 100% 0% 20% 30% 100% 100% 0% 5% 60% 35% Required: Complete the first stage allocations of costs to activity cost pools. Pickup and Customer Travel Delivery Service Other Totals Driver and guard wages 24 Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost 0 S
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost allocation
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS