ecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is plementing an activity-based costing system with four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. he activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and umber of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is an organization- staining 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 Vehicle depreciation. Customer representative salaries and expenses Office expenses Administrative expenses me distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Delivery Service 35% 10% 5% 15% $ 720,000 280,000 120,000 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses 160,000 30,000 320,000 $1,630,000 Administrative expenses Total cost Travel 50% 70% 60% equired: Complete the first stage allocations of costs to activity cost pools. 0% 0% 0% Travel 0% 20% 5% Pickup and Delivery 0% 0% 90% 30% 60% Customer Service Other Totals 5% 100% 25% 100% 25% 100% 10% 50% 35% 100% 100% 100% Other Totals
ecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is plementing an activity-based costing system with four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. he activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and umber of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is an organization- staining 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 Vehicle depreciation. Customer representative salaries and expenses Office expenses Administrative expenses me distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Delivery Service 35% 10% 5% 15% $ 720,000 280,000 120,000 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses 160,000 30,000 320,000 $1,630,000 Administrative expenses Total cost Travel 50% 70% 60% equired: Complete the first stage allocations of costs to activity cost pools. 0% 0% 0% Travel 0% 20% 5% Pickup and Delivery 0% 0% 90% 30% 60% Customer Service Other Totals 5% 100% 25% 100% 25% 100% 10% 50% 35% 100% 100% 100% Other Totals
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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