1 viyalization-sustaining activity. The following COSTS will be assigned using the activity-based Costing system. Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses oints Office expenses Administrative expenses Total cost $ 920,000 350,000 230,000 260,000 120,000 420,000 $2,300,000 eBook The distribution of resource consumption across the activity cost pools is as follows: Hint Pickup and Travel Delivery Customer Service Other Totals Driver and guard wages 50% 35% 10% 5% 100% Print Vehicle operating expense 70% 5% 0% 25% 100% Vehicle depreciation 60% 15% 0% 25% 100% Customer representative salaries and 0% 0% 90% 10% 100% expenses Office expenses 0% 20% 30% 50% 100% Administrative expenses 0% 5% 60% 35% 100% Mc Graw Hill Required: Complete the first stage allocations of costs to activity cost pools. Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost Travel Pickup and Delivery Customer Service Other Totals Prev 1 of 5 Next > Chec
1 viyalization-sustaining activity. The following COSTS will be assigned using the activity-based Costing system. Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses oints Office expenses Administrative expenses Total cost $ 920,000 350,000 230,000 260,000 120,000 420,000 $2,300,000 eBook The distribution of resource consumption across the activity cost pools is as follows: Hint Pickup and Travel Delivery Customer Service Other Totals Driver and guard wages 50% 35% 10% 5% 100% Print Vehicle operating expense 70% 5% 0% 25% 100% Vehicle depreciation 60% 15% 0% 25% 100% Customer representative salaries and 0% 0% 90% 10% 100% expenses Office expenses 0% 20% 30% 50% 100% Administrative expenses 0% 5% 60% 35% 100% Mc Graw Hill Required: Complete the first stage allocations of costs to activity cost pools. Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost Travel Pickup and Delivery Customer Service Other Totals Prev 1 of 5 Next > Chec
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter12: Activity-based Management
Section: Chapter Questions
Problem 14E: Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving...
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