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Activity Cost Driver 1. Order processing Number of orders 2. Line item ordering Number of line items 3. Store delivery Number of store deliveries 4.

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Activity Cost Driver 1. Order processing Number of orders 2. Line item ordering Number of line items 3. Store delivery Number of store deliveries 4. Caltons shipped to stores Number of cartons shipped to a store per delively 5. Shelf stacking at customer store Number of hours of shelf stacking Each order consists of one or more line items. A line item represents a single product (such as Extra-Strength Tylenol Caplets). Each store delivery entails delivery of 1 or more cartons of products. Each product is delivered in one or more separate cartons. Ethical D111gs delivery staff stack ca1tons directly onto display shelves in a store. Currently there is no charge for this selvice and not all customers use Ethical Dlugs for this activity. The April operating costs (other than COGS) of the S&M division total $351,080. The costs in each area and the number of units of cost drivers during April are: Total Costs Total Units of Cost Activity Area in April Driver in April 1. Order Processing 8 80,000 2,000 orders 2. Line item ordering 63,840 21,280 line items 3. Store deliveries "31,000 1,420 store deliveries

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