Homework SourseSecuriCorp operates a fleet of armored cars that make schedu
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:
The distribution of resource consumption across the activity cost pools is as follows:
Required:
Complete the first stage allocations of costs to activity cost pools.
please explain
| Driver and guard wages | $ | 920,000 |
| Vehicle operating expense | 350,000 | |
| Vehicle depreciation | 230,000 | |
| Customer representative salaries and expenses | 260,000 | |
| Office expenses | 120,000 | |
| Administrative expenses | 420,000 | |
| Total cost | $ | 2,300,000 |
Solution
Complete the first stage allocations of costs to activity cost pools.
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