Help Save & Ch orp operates a fleet of armored cars that make scheduled pickups

Question

Help Save & Ch orp 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 organization-sustaining activity. The following costs will be assigned using the activity-based costing system $1,140,e00 570,000 450,080 488,089 340,000 640,000 $ 3,620,000 Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Total cost The distribution of resource consumption across the activity cost pools is as follows Pickup Custoner Travel Delivery Service other Totals Driver and guard wages Vehicle operating expense Vehicle depreciation se% 70% 35% 5% 15% 100% 100% 100% 0% ees expenses

Explanation / Answer

given information

as in the given ratio, the said cost would be distributed -

formula has been written in the format but in case if it is missed to mention. Please comment.

Amt. $ Travel Pick up and delivery customer service other Totals Driver and guard wages 1140000 50% 35% 10% 5% 100% vehicle operating expense 570000 70% 5% 0% 25% 100% vehicle depriciation 450000 60% 15% 0% 25% 100% customer representative salaries and expenses 480000 0% 0% 90% 10% 100% office expenses 340000 0% 20% 30% 50% 100% administrative expenses 640000 0% 5% 60% 35% 100% Total Cost 3620000

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