implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, andOther. 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 anorganization-sustaining activity. The following costs will be assigned using the activity-based costing systemDriver and guard wagesVehicle operating expenseVehicle depreciation.Customer representative salaries and iexpensesoffice expensesDriver and guard wagesVehicle operating expenseVehicle depreciationCustomer representative salaries andexpensesoffice expensesAdministrative expensesAdministrative expensesTotal costThe distribution of resource consumption across the activity cost pools is as follows.Pickup andDelivery35%5%$1,000,000510,000390,000Driver and guard wagesVehicle operating expenseVehicle depreciationCustomer representative salaries and expensesOffice expenses420,000280,000580,000$ 3,260,000Administrative expensesTotal costTravel50%70%%60%0x0%oxRequired:Complete the first stage allocations of costs to activity cost pools.S25%Travelox20%5%CustomerService10%exOxPickup andDelivery0590%30%60%Other5%25%25%0 S10%50%35%CustomerService0 $Totals100%100%100%100%100%100%Other$1,000 $Totals0001,000001,000

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Description: implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, andOther. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and D

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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

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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 10MC: What is the proper order of tasks In an ABC system? identify the cost drivers, assign the costs to...

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