Maurice Tutor

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    Oct-2001 - Nov-2016

Category > Accounting Posted 11 Aug 2017 My Price 13.00

Wheels Corporation

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 $ $ $ $ $

 

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Aug 2017 05:08 PM My Price 13.00

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