Case 4: Bethilda's Brooms Bethilda's Brooms manufactures brooms which it sells to merchandising rms such as Quality Quidditch Supplies (QQS), Brooms 'R Us (BRU), Broom-Mart (BM), Broom City (BC), Best Brooms (BB), and Clean Sweep (CS). The list price of a broom is $48, and the full manufacturing costs are $28. Salespeople receive a commission on sales: the commission of $30 per order is based on number of orders taken and paid in addition to regular salary. Bethilda's Brooms makes products based on anticipated demand; however, Bethilda carries an inventory of brooms, so rush orders do not result in any extra manufacturing costs over and above the $28 per broom. Bethilda's Brooms ships nished product to the customer at no additional charge to the customer for either regular or expedited delivery. Bethilda incurs signicantly higher costs for expedited deliveries than for regular deliveries. Expected and actual customerlevel cost driver rates are provided. Activity Cost Driver Rate Order taking (excluding sales commission) $30 per order Product handling $1.90 per unit Delivery $2 per km driven Expedited (rush) delivery $320 per shipment Information about Bethilda's clients during 2019 is as follows: QQS BRU BM BC BB CS Total number of units 270 580 400 140 460 1,500 purchased Number of actual orders 3 17 3 3 6 15 Number of written orders per actual order 3 2 * 4 3 6 3 Total number of km driven to deliver all products 80 134 Z 46 316 120 Number of expedited 0 6 0 0 4 3 deliveries *Because BRU places 17 separate orders, its order costs are $30 per order. All other orders are multiple smaller orders and so have actual order costs of $12 each. Because salespeople are paid $30 per order. they break up large orders into multiple smaller orders. This practice reduces the actual ordertaking cost by $18 per smaller