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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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
Transcribed Image Text: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
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