Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Complete this question by entering your answers in the tabs below. Required A Required B What would the delivery charge for each customer be under
Complete this question by entering your answers in the tabs below. Required A Required B What would the delivery charge for each customer be under the current policy of 10 percent of order value? Delivery Charge Per Customer City Diner Le Chien Chaud Marvin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. A consultant has analyzed the delivery service using activity- based costing methods and identified four activities. Data on these activities follow. Activity Processing order Loading truck Delivering merchandise Processing invoice Cost Driver Number of orders Number of items Number of orders Number of invoices Cost $ 52,000 Cost Driver Volume Driver Volume 4,000 orders 143,000 110,000 items 64,000 4,000 orders Total overhead 48,000 $307,000 3,000 invoices Two of Marvin's customers are City Diner and Le Chien Chaud. Data for orders and deliveries to these two customers follow. Order value Number of orders Number of items Number of invoices City Diner Le Chien Chaud $71,000 51 700 11 $81,000 130 1,700 170 Required: a. What would the delivery charge for each customer be under the current policy of 10 percent of order value? b. Calculate the cost of each activity for both restaurants to determine the total activity-based costing estimate of the cost of delivering to each customer. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the cost of each activity for both restaurants to determine the total activity-based costing estimate of the cost of delivering to each customer. (Do not round intermediate calculations.) Processing order Loading truck Delivering merchandise Processing invoice Total cost City Diner Le Chien Chaud < Required A Required B >
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started