10-29. Activity-Based Costing of Customers Marvins Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. A consultant has analyzed the delivery service using activity-based cost- ing methods and identified four activities. Data on these activities follow: Cost Driver Volume Activity Cost Driver Cost Driver Volume Processing order. . . . . . . . . . Number of orders $ 75,000 5,000 orders Loading truck . . . . . . . . . . . . Number of items 150,000 100,000 items Delivering merchandise . . . . Number of orders 90,000 5,000 orders Processing invoice . . . . . . . . Number of invoices 72,000 4,000 invoices Total overhead. . . . . . . . . . $387,000 Two of Marvins customers are City Diner and Le Chien Chaud. Data for orders and deliver- ies to these two customers follow: City Diner Le Chien Chaud Order value . . . . . . . . . . . . . $75,000 $90,000 Number of orders . . . . . . . . 52 110 Number of items . . . . . . . . . 600 1,500 Number of invoices . . . . . . . 12 150 Required c. How could Marvins use the information identified by the new costing method to manage costs