PO Centre com/hm.tp window shows what is correct and incorrect for the work you

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PO Centre com/hm.tp window shows what is correct and incorrect for the work you have completed so fa d all of the work you have done so far is cormect, you may not have completed everything 1· 1000 points SecurCorp operates a fleet of amored 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 activily measures are mles for the Travel cost pool, number of pickups and delivenies 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 t is an organization-sustaining activity. The following costs wll be assigned using the activity based costing system Driver and guard wages 1,040,000 Vehicle depreciation Customer representative salaries and expenses Office expenses 360,000 380,000 240,000 40.000 e expenses Total cost $3 020,00 The distribution of resouce consumption across the activity cost pools is as follows Pickup and Customer Service 10% 0% 0% 90% 30% 60% Other 5% 25% 25% 10% 50% 35% Toals 100% 100% 100% 10% 100% 100% Travel 50% Delivery 35% Dniver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salanes and expenses Office expenses 60% 0% 0% 15% 0% 20% Required Complete the frst stage allocations of costs to activity cost pools s0x $ 70X 60x Driver and guand wages Vehicle operating expense Vehicle depreciation Oustomer representative salaries and expenses Office expenses Administrative expenses Total cost 36x s 5X 20x 80 $ 96 75 75 20 ov 180 S

Explanation / Answer

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Answer 1 Particulars Travel Pickup and delivery Customer Service Other Total Driver & guard wages 520000 364000 104000 52000 1040000 Vehicle Operating Expenses 329000 23500 0 117500 470000 Vehicle Depreciation 210000 52500 0 87500 350000 Customer representative salaries and expenses 0 0 342000 38000 380000 Office expenses 0 48000 72000 120000 240000 Administrative expenses 0 27000 324000 189000 540000 Total Cost 1059000 515000 842000 604000 3020000 Formula = Expense X %age of that Activity cost area

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