Solution-First stage allocations of costs to activity cost

First stage allocations of costs to activity cost pools

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Reference no: EM131798951

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:

Driver and guard wages	$1,080,000
Vehicle operating expense	510,000
Vehicle depreciation	390,000
Customer representative salaries and expenses	420,000
Office expenses	280,000
Administrative expenses	580,000

Total cost	$3,260,000

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.

Reference no: EM131798951

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First stage allocations of costs to activity cost pools

Reference no: EM131798951

Reference no: EM131798951

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