Delhi Transport Runs A Fleet Of Ac Cars That Make Scheduled Pickups And Deliveries In The New Delhi Area The Company Is 1 (40.91 KiB) Viewed 31 times
Delhi Transport Runs A Fleet Of Ac Cars That Make Scheduled Pickups And Deliveries In The New Delhi Area The Company Is 2 (28.78 KiB) Viewed 31 times
Delhi Transport Runs A Fleet Of Ac Cars That Make Scheduled Pickups And Deliveries In The New Delhi Area The Company Is 3 (31.5 KiB) Viewed 31 times
Delhi Transport runs a fleet of AC cars that make scheduled pickups and deliveries in the New Delhi 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. The following costs will be assigned using the activity-based costing system Driver and guard wages R2040,000 Vehicle operating expenses 960,000 Vehicle depreciation 240,000 Customer representative salaries and expenses 320,000 Office expenses 640,000 Total cost 342,00,000 The distribution of resource consumption across the activity cost pool it pond s as follows: Tintain
The distribution of resource consumption across the activity cost pool is as follows: Travelpickup kust. Other Totals land Serv Delivery 1.Driver and guard wages 50% 30% 15% 5% 100% 2. Vehicle operating expenses 3. Vehicle depreciation 70% 5% 0% 25% 100% 4. Customer representa- tive salaries and exp 60% 15% 0% 25% 100% 5. Office expenses 0% 096 90% 10% 0% 20% 30% 50% 100% 100% During the year each cost pool is having following volumes: Travel 60000 kms 900 Nos Pickup and Delivery 1750 customers Customer Service
0% 0% 90% 10% 100% 0% 12096 30% 50% 100% During the year each cost pool is having following volumes. Travel 60000 kms 900 Nos Pickup and Delivery Customer Service 750 customers Required: 1) Carry out the first stage allocations of costs to activity cost pools and find out the Activity measure rates. 2) Find out the cost to be charged to a customer if he travels from Lajpat Nagar to Vasant Kunj, a distance of 15 kms and one of his friend got up in between n
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