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Caldwell Supply, a wholesaler, has determined that its operations have three primary activities: purchasing, warehousing, and distributing. The firm reports the following operating data for

Caldwell Supply, a wholesaler, has determined that its operations have three primary activities: purchasing, warehousing, and distributing. The firm reports the following operating data for the year just completed:

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Quantity of Cost per Unit of Cost Activity Cost Driver Cost Driver Driver Purchasing Number of purchase orders 1, 070 $ 157 per order Warehousing Number of moves 8,700 37 per move Distributing Number of shipments 570 87 per shipment

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