12.7 Arbend is an Internet-based bookseller which uses an ABC system. The chief management accountant and his team have produced the following information about expected annual overhead cost pools, activities and cost drivers:

Activity Cost driver Total for year Total overhead pool per cost driver £000 Receipt of books, unpacking and shelving Number of book orders received from publishers 250 000 orders 1000 Storage Number of books 12 million books, each spending on average 1 month in storage 6 800 Customer order processing, packaging Number of orders received from customers 4 million orders 2 400 Inventory picking Number of items on picking list 12 million items 800 Total 11 000 Each book order to a publisher comprises on average 48 books.

Required: using the above information, calculate the overhead cost associated with an order of four books from a customer.