Mgr Accnt Homework Question 448313

VaultOnWheels Corporation operates a fleet of armored cars that make scheduled pickups and deliveries for its customers in the Phoenix 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 $ 900,000 Vehicle operating expense
330,000 Vehicle depreciation
210,000 Customer representative salaries and expenses
240,000 Office expenses
100,000 Administrative expenses
400,000



Total cost $ 2,180,000






The distribution of resource consumption across the activity cost pools is as follows:

Travel Pickup
and
Delivery Customer
Service Other Totals Driver and guard wages 40 % 45 % 10 % 5 % 100 % Vehicle operating expense 75 % 5 % 0 % 20 % 100 % Vehicle depreciation 70 % 10 % 0 % 20 % 100 % Customer representative salaries and expenses 0 % 0 % 85 % 15 % 100 % Office expenses 0 % 25 % 35 % 40 % 100 % Administrative expenses 0 % 5 % 55 % 40 % 100 %


Required:

Complete the first-stage allocations of costs to activity cost pools. (Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.)

Travel Pickup and
Delivery Customer
Service Other Totals Driver and guard wages $ $ $ $ $ Vehicle operating expense Vehicle depreciation

Customer representative salaries and expenses

Office expenses Administrative expenses






Total cost $ $ $ $ $

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