D. Walid Corporation operates a fleet of armored cars that make scheduled pickups and deliveries for its customers in the Muscat 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 following costs will be assigned using the activity-based osting system:

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Walid Corporation operates a fleet of armored cars that make
scheduled pickups and deliveries for its customers in the Muscat
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 following costs will be assigned using the activity-based
costing system:
Driver and guard wages
Vehicle operating expense
Vehicle depreciation
Customer representative salaries and expenses .
Office expenses
Administrative expenses
10.
$420,000
300,000
.200,000
180,000
. 50,000
. 350,000
Total cost
$1,500,000
The distribution of resource consumption across the activity cost
pools is as follows:
Travel Pickup and
delivery
Customer
other Total
service
Driver and guard wages
Vehicle operating expense
Vehicle depreciation
45% 35%
15%
5% 100%
70% 10%
0%
20% 100%
65% 15%
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%
Instructions
Compute the stage allocation of costs of activity cost pools.
Transcribed Image Text:Walid Corporation operates a fleet of armored cars that make scheduled pickups and deliveries for its customers in the Muscat 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 following costs will be assigned using the activity-based costing system: Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses . Office expenses Administrative expenses 10. $420,000 300,000 .200,000 180,000 . 50,000 . 350,000 Total cost $1,500,000 The distribution of resource consumption across the activity cost pools is as follows: Travel Pickup and delivery Customer other Total service Driver and guard wages Vehicle operating expense Vehicle depreciation 45% 35% 15% 5% 100% 70% 10% 0% 20% 100% 65% 15% 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% Instructions Compute the stage allocation of costs of activity cost pools.
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