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 quard vages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses Total cost Driver and quard vages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Service 10% 04 Ok $ 1,140,000 570,000 450,000 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses 480,000 340,000 640,000 $ 3,620,000 Administrative expenses Total cost Travel 50% 70% 60% ON ON ON Required: Complete the first stage allocations of costs to activity cost pools Delivery 358 54 158 Travel 04 201 Pickup and Delivery 30% 30% 60% Other Totals 54 100% 100% 20% 25% 254 10% 50% 358 Customer Service 100% 100% 100% Other Totale

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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 quard vages
Vehicle operating expense
Vehicle depreciation
Customer representative salaries and
expenses
office expenses
Administrative expenses
Total cost
Driver and quard vages
Vehicle operating expense
Vehicle depreciation.
Customer representative salaries and
expenses
office expenses
Administrative expenses
The distribution of resource consumption across the activity cost pools is as follows:
Pickup and
Delivery
358
54
158
$1,140,000
570,000
450,000
Driver and guard wages
Vehicle operating expense
Vehicle depreciation
Customer representative salaries and expenses
Office expenses
480,000
340,000
640,000
$ 3,620,000
Administrative expenses
Total cost
Travel
50%
-70%
60%
ON
ON
ON
Required:
Complete the first stage allocations of costs to activity cost pools
06
201
Travel
customer
Service
20%
Pickup and
Delivery
ON
30%
306
60%
Other
54
25%
238
30%
50%
351
Customer
Service
Totale
100%
100%
100%
100%
100%
100%
Other
Totals
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 quard vages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses Total cost Driver and quard vages Vehicle operating expense Vehicle depreciation. Customer representative salaries and expenses office expenses Administrative expenses The distribution of resource consumption across the activity cost pools is as follows: Pickup and Delivery 358 54 158 $1,140,000 570,000 450,000 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses 480,000 340,000 640,000 $ 3,620,000 Administrative expenses Total cost Travel 50% -70% 60% ON ON ON Required: Complete the first stage allocations of costs to activity cost pools 06 201 Travel customer Service 20% Pickup and Delivery ON 30% 306 60% Other 54 25% 238 30% 50% 351 Customer Service Totale 100% 100% 100% 100% 100% 100% Other Totals
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