|
SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles 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 | $ | 980,000 |
| Vehicle operating expense | 410,000 | |
| Vehicle depreciation | 290,000 | |
| Customer representative salaries and expenses | 320,000 | |
| Office expenses | 180,000 | |
| Administrative expenses | 480,000 | |
| Total cost | $ | 2,660,000 |
| 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 | 50 | % | 35 | % | 10 | % | 5 | % | 100 | % |
| Vehicle operating expense | 70 | % | 5 | % | 0 | % | 25 | % | 100 | % |
| Vehicle depreciation | 60 | % | 15 | % | 0 | % | 25 | % | 100 | % |
| Customer representative salaries and expenses | 0 | % | 0 | % | 90 | % | 10 | % | 100 | % |
| Office expenses | 0 | % | 20 | % | 30 | % | 50 | % | 100 | % |
| Administrative expenses | 0 | % | 5 | % | 60 | % | 35 | % | 100 | % |
| Required: |
|
Complete the first stage allocations of costs to activity cost pools. |
In: Accounting
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 | $ | 867,000 | |
| Vehicle operating expense | 288,000 | ||
| Vehicle depreciation | 159,000 | ||
| Customer representative salaries and expenses | 189,000 | ||
| Office expenses | 44,500 | ||
| Administrative expenses | 358,000 | ||
| Total cost | $ | 1,905,500 | |
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 | 40 | % | 45 | % | 10 | % | 5 | % | 100 | % | |||||
| Vehicle operating expense | 70 | % | 10 | % | 0 | % | 20 | % | 100 | % | |||||
| Vehicle depreciation | 75 | % | 5 | % | 0 | % | 20 | % | 100 | % | |||||
| Customer representative salaries and expenses |
0 | % | 0 | % | 85 | % | 15 | % | 100 | % | |||||
| Office expenses | 0 | % | 20 | % | 30 | % | 50 | % | 100 | % | |||||
| Administrative expenses | 0 | % | 5 | % | 50 | % | 45 | % | 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.)
In: Finance
|
SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles 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 | $ | 920,000 |
| Vehicle operating expense | 350,000 | |
| Vehicle depreciation | 230,000 | |
| Customer representative salaries and expenses | 260,000 | |
| Office expenses | 120,000 | |
| Administrative expenses | 420,000 | |
| Total cost | $ | 2,300,000 |
| 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 | 50 | % | 35 | % | 10 | % | 5 | % | 100 | % |
| Vehicle operating expense | 70 | % | 5 | % | 0 | % | 25 | % | 100 | % |
| Vehicle depreciation | 60 | % | 15 | % | 0 | % | 25 | % | 100 | % |
| Customer representative salaries and expenses | 0 | % | 0 | % | 90 | % | 10 | % | 100 | % |
| Office expenses | 0 | % | 20 | % | 30 | % | 50 | % | 100 | % |
| Administrative expenses | 0 | % | 5 | % | 60 | % | 35 | % | 100 | % |
| Required: |
|
Complete the first stage allocations of costs to activity cost pools. |
In: Accounting
SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles 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 | $ | 1,160,000 |
| Vehicle operating expense | 590,000 | |
| Vehicle depreciation | 470,000 | |
| Customer representative salaries and expenses | 500,000 | |
| Office expenses | 360,000 | |
| Administrative expenses | 660,000 | |
| Total cost | $ | 3,740,000 |
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 | 50 | % | 35 | % | 10 | % | 5 | % | 100 | % |
| Vehicle operating expense | 70 | % | 5 | % | 0 | % | 25 | % | 100 | % |
| Vehicle depreciation | 60 | % | 15 | % | 0 | % | 25 | % | 100 | % |
| Customer representative salaries and expenses | 0 | % | 0 | % | 90 | % | 10 | % | 100 | % |
| Office expenses | 0 | % | 20 | % | 30 | % | 50 | % | 100 | % |
| Administrative expenses | 0 | % | 5 | % | 60 | % | 35 | % | 100 | % |
Required:
Complete the first stage allocations of costs to activity cost pools.
In: Accounting
In: Other
SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles 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 | $ | 860,000 |
| Vehicle operating expense | 290,000 | |
| Vehicle depreciation | 170,000 | |
| Customer representative salaries and expenses | 200,000 | |
| Office expenses | 60,000 | |
| Administrative expenses | 360,000 | |
| Total cost | $ | 1,940,000 |
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 | 50 | % | 35 | % | 10 | % | 5 | % | 100 | % |
| Vehicle operating expense | 70 | % | 5 | % | 0 | % | 25 | % | 100 | % |
| Vehicle depreciation | 60 | % | 15 | % | 0 | % | 25 | % | 100 | % |
| Customer representative salaries and expenses | 0 | % | 0 | % | 90 | % | 10 | % | 100 | % |
| Office expenses | 0 | % | 20 | % | 30 | % | 50 | % | 100 | % |
| Administrative expenses | 0 | % | 5 | % | 60 | % | 35 | % | 100 | % |
Required:
Complete the first stage allocations of costs to activity cost pools.
In: Accounting
SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles 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 $ 1,180,000 Vehicle operating expense 610,000 Vehicle depreciation 490,000 Customer representative salaries and expenses 520,000 Office expenses 380,000 Administrative expenses 680,000 Total cost $ 3,860,000 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 50 % 35 % 10 % 5 % 100 % Vehicle operating expense 70 % 5 % 0 % 25 % 100 % Vehicle depreciation 60 % 15 % 0 % 25 % 100 % Customer representative salaries and expenses 0 % 0 % 90 % 10 % 100 % Office expenses 0 % 20 % 30 % 50 % 100 % Administrative expenses 0 % 5 % 60 % 35 % 100 % Required: Complete the first stage allocations of costs to activity cost pools.
In: Accounting
MicroMem is a fast-growing manufacturer of computer chips. Direct materials are added at the start of the production process. Conversion costs are added evenly during the process. Some units of this product are spoiled as a result of defects not detectable before inspection of finished goods. Spoiled units are disposed of at zero net disposal value. MicroMem uses the weighted-average method of process costing. Summary data for September 2017 are as follows:
| Physical Units (Computer Chips) | Direct Materials | Conversion Costs | |
| Work in process, beginning inventory (September 1) | 1,400 | $ 117,532 | $ 17,087 |
| Degree of completion of beginning work in progress | 100% | 30% | |
| Started during September | 1,964 | ||
| Good units completed and transferred out during September | 2,200 | ||
| Work in process, ending inventory (September 30) | 540 | ||
| Degree of completion of ending work in process | 100% | 25% | |
| Total costs added during September | $ 575,452 | $ 228,510 | |
| Normal spoilage as a percentage of good units | 15% | ||
| Degree of completion of normal spoilage | 100% | 100% | |
| Degree of completion of abnormal spoilage | 100% | 100% |
|
1. |
For each cost category, compute equivalent units. Show physical units in the first column of your schedule. |
|
2. |
Summarize the total costs to account for; calculate the cost per equivalent unit for each cost category; and assign costs to units completed and transferred out(including normal spoilage), to abnormal spoilage, and to units in ending work in process. |
In: Accounting
SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles 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 | $ | 880,000 |
| Vehicle operating expense | 310,000 | |
| Vehicle depreciation | 190,000 | |
| Customer representative salaries and expenses | 220,000 | |
| Office expenses | 80,000 | |
| Administrative expenses | 380,000 | |
| Total cost | $ | 2,060,000 |
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 | 50 | % | 35 | % | 10 | % | 5 | % | 100 | % |
| Vehicle operating expense | 70 | % | 5 | % | 0 | % | 25 | % | 100 | % |
| Vehicle depreciation | 60 | % | 15 | % | 0 | % | 25 | % | 100 | % |
| Customer representative salaries and expenses | 0 | % | 0 | % | 90 | % | 10 | % | 100 | % |
| Office expenses | 0 | % | 20 | % | 30 | % | 50 | % | 100 | % |
| Administrative expenses | 0 | % | 5 | % | 60 | % | 35 | % | 100 | % |
Required:
Complete the first stage allocations of costs to activity cost pools.
In: Accounting
Suppose there are only five customers (A, B, C, D, and E) interested in buying widgets. Customer A is willing to pay $11, customer B is willing to pay $9, customer C is willing to pay $7, customer D is willing to pay $5, and customer E is willing to pay $4. Lastly, suppose that all costs of production are zero.
In: Economics