SecuriCorp operates a fleet of armored cars thet moke schedu

SecuriCorp operates a fleet of armored cars thet moke 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 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 activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost 960,600 390,800 276,800 300,800 160,800 460,800 $2,548,ee0 of resource consumption across the activity cost pools is as follows: pickup customer other 100% Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and Travel Delivery Service Other Totals 18% 8% 0% 35% 5% 15% 5% 25% 25% 100% 100% . 1eex 78% 60% Offienses Administrative expenses 0% 98% 38% 68% 18% 50% 35% 198% 100% 1eex Office expenses 6% 8% 5% Required: Complete the first stage allocations of costs to activity cost pools. Pickup and Customer Travel Delivery Service Other Driver and guard wages Vehicle operating expense Customer representative salaries and expenaes Office expenses Total cost

Solution

First stage allocation :

		Pickup and	Customer
	Travel	Delivery	Service	Other	Totals
Driver and guard wages	480000	336000	96000	48000	960000
Vehicle operating expense	273000	19500	0	97500	390000
Vehicle depreciation	162000	40500	0	67500	270000
Customer representative salaries and expenses	0	0	270000	30000	300000
Office expenses	0	32000	48000	80000	160000
Administrative expenses	0	23000	276000	161000	460000
Total cost	915000	451000	690000	484000	2540000