Question
3) Check my workCheck My Work button is now disabled2 Item 3 Express Travel decides to price delivery services according to the results of a
3)
Check my workCheck My Work button is now disabled2
Item 3
Express Travel decides to price delivery services according to the results of a recent activity-based costing (ABC) study. The study indicates Express Travel should charge $16 per order, 1% of annual order value for general delivery costs, $2.50 per item, and $45 for delivery.
A year later, Express Travel collected the following information for three of its customers:
| Cost driver | Customer A | Customer B | Customer C | ||||||||
| Number of orders | 18 | 8 | 12 | ||||||||
| Number of deliveries | 10 | 10 | 24 | ||||||||
| Total number of items | 2,000 | 4,000 | 12,000 | ||||||||
| Annual order value | $ | 120,000 | $ | 80,000 | $ | 100,000 | |||||
What are the total delivery costs charged to Customer B during the year?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
