Alter's Home Center $($AHC$)$ sells renovation and remodellng products to both contractors and Indlvidual home owners. One of the services AHC offers is dellvery of the purchased products to the customer's work slte. Because not all customers take advantage of the dellvery service optlon, ACH adds $10$ percent to the cost of the products purchased to cover the dellvery cost. A business intern spent the summer at ACH. The Intern's assignment was to analyze the dellvery service and recommend a better way to charge customers for using It$.$ The Intern, who had studled actlvity$-$based costing, Ident$/$fied the following actlvitles and the data related to them:

$\backslash$table$[[$Activity$,$Cost Driver,Annual cost,Annual Drivex Volume$],[\backslash$table$[[$Plcking order$],[$Dellvering order$]],$Number of items,$$361,440,376,500$ Items$],[\backslash$table$[[$Delivering order$],[$Handling complaints$]],$Number of orders,$1,406,000,37,000$ orders$],[$Total dellvery cost,rumber or complaints,$$1,814,700,170$ complaints$]]$

The Intern selected two customers, who were frequent customers, to use as an Illustration of the system: Wagner Remodellng and Burlington Contractors. The intern collected the following Information on these two customers for the most recent six months:

Required:

a$.$ What would the dellvery charge for each customer be under the current pollcy of $10$ percent of order value?

b$.$ What would the actlvity$-$based costing system estimate as the cost of dellyerlng to each customer?

Complete this question by entering your answers in the tabs below.

Required A

What would the delivery charge for each customer be under the current policy of $10$ percent of order value?

$\backslash$table$[[,\backslash$table$[[$Delivery Charge$],[$Per Customer$]]],[$Wagner Remodeling,$],[$Burlington Contractors,$]]$