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Exercise 7-2 First Stage Allocation [LO7-2] 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 poc 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 vages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses Total cost $ 920,000 350,000 230,000 260,000 120,000 420,000 $2,300,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Delivery Driver and quard vages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses Travel 50% 70% 0 08 0 54 158 0 20% 54 Required: Complete the first stage allocations of costs to activity cost pools. Customer Service 10% 0 0 90% 301 60% Other 54 25% 25 10% 50% 358 Totala 100% 100% 100% 100% 100% 100%

Exercise 7-2 First Stage Allocation [LO7-2] 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 poc 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 vages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses Total cost $ 920,000 350,000 230,000 260,000 120,000 420,000 $2,300,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Delivery Driver and quard vages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses Travel 50% 70% 0 08 0 54 158 0 20% 54 Required: Complete the first stage allocations of costs to activity cost pools. Customer Service 10% 0 0 90% 301 60% Other 54 25% 25 10% 50% 358 Totala 100% 100% 100% 100% 100% 100%

Pkg Acc Infor Systems MS VISIO CD
Pkg Acc Infor Systems MS VISIO CD
10th Edition
ISBN:9781133935940
Author:Ulric J. Gelinas
Publisher:Ulric J. Gelinas
Chapter17: Acquiring And Implementing Accounting Information Systems
Section: Chapter Questions
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Exercise 7-2 First Stage Allocation [LO7-2] 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 quard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses Total cost The distribution of resource consumption across the activity cost pools is as follows: Pickup and Delivery 358 50 158 $ 920,000 350,000 230,000 260,000 120,000 420,000 $2,300,000 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses. Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost Travel 50% 70% 60% 0 ON 08 Required: Complete the first stage allocations of costs to activity cost pools. 0 20% 54 Travel Customer Service 10% ON 08 90% 30% 60% Pickup and Delivery Other 58 25% 25% 10% 50% 358 Customer Service Totala 100% 100% 100% 100% 100% 100% Other Totals
Transcribed Image Text:Exercise 7-2 First Stage Allocation [LO7-2] 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 quard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses Total cost The distribution of resource consumption across the activity cost pools is as follows: Pickup and Delivery 358 50 158 $ 920,000 350,000 230,000 260,000 120,000 420,000 $2,300,000 Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses. Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost Travel 50% 70% 60% 0 ON 08 Required: Complete the first stage allocations of costs to activity cost pools. 0 20% 54 Travel Customer Service 10% ON 08 90% 30% 60% Pickup and Delivery Other 58 25% 25% 10% 50% 358 Customer Service Totala 100% 100% 100% 100% 100% 100% Other Totals
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