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...


Walid Corporation operates a fleet of armored cars that make<br>scheduled pickups and deliveries for its customers in the Muscat<br>area. The company is implementing an activity-based costing<br>system that has four activity cost pools: Travel, Pickup and<br>Delivery, Customer Service, and Other. The activity measures are<br>miles for the Travel cost pool, number of pickups and deliveries<br>for the Pickup and Delivery cost pool, and number of customers<br>for the Customer Service cost pool.<br>The following costs will be assigned using the activity-based<br>costing system:<br>Driver and guard wages<br>Vehicle operating expense<br>Vehicle depreciation<br>Customer representative salaries and expenses .<br>Office expenses<br>Administrative expenses<br>10.<br>$420,000<br>300,000<br>.200,000<br>180,000<br>. 50,000<br>. 350,000<br>Total cost<br>$1,500,000<br>The distribution of resource consumption across the activity cost<br>pools is as follows:<br>Travel Pickup and<br>delivery<br>Customer<br>other Total<br>service<br>Driver and guard wages<br>Vehicle operating expense<br>Vehicle depreciation<br>45% 35%<br>15%<br>5% 100%<br>70% 10%<br>0%<br>20% 100%<br>65% 15%<br>0%<br>20% 100%<br>Customer representative salaries<br>and expenses<br>0%<br>0%<br>85%<br>15% 100%<br>Office expenses<br>0%<br>25%<br>35%<br>40% 100%<br>Administrative expenses<br>0%<br>5%<br>55%<br>40% 100%<br>Instructions<br>Compute the stage allocation of costs of activity cost pools.<br>

Extracted 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.

Jun 08, 2022
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