Question

MobileCash Corporation operates a fleet of armoured cars that make scheduled pickups and deliveries for its customers. The company is implementing an ABC system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are kilometres 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. The following costs will be assigned using the ABC system:

Driver and guard wages	$	897,000
Vehicle operating expense		308,000
Vehicle depreciation		169,000
Customer representative salaries and expenses		199,000
Office expenses		49,500
Administrative expenses		378,000
Total cost	$	2,000,500

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		35	%		45	%		15	%		5	%		100	%
Vehicle operating expense		65	%		10	%		0	%		25	%		100	%
Vehicle depreciation		65	%		10	%		0	%		25	%		100	%
Customer representative salaries     and expenses		0	%		0	%		75	%		25	%		100	%
Office expenses		0	%		25	%		35	%		40	%		100	%
Administrative expenses		0	%		15	%		45	%		40	%		100	%

Required:

Carry out the first-stage allocations of costs to activity cost pools. (Do not leave any empty spaces; input a 0 wherever it is required.)

Answer 1

Carry out the first-stage allocations of costs to activity cost pools. (Do not leave any empty spaces; input a 0 wherever it is required.)

	Travel	Pickup and Delivery	Customer service	Other	Total
Driver and guard wages	313950	403650	134550	44850	897000
Vehicle operating expense	200200	30800	0	77000	308000
Vehicle depreciation	109850	16900	0	42250	169000
Customer representative salaries and expenses	0	0	149250	49750	199000
Office expense	0	12375	17325	19800	49500
Administrative expenses	0	56700	170100	151200	378000
Total	624000	520425	471225	384850	2000500