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Exercise 10-30 (Algo) Activity-Based Costing of Customers (LO 10-3,4) Alters Home Center (AHC) sels renovation and remodeling products to both contractors and individual home owners.

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Exercise 10-30 (Algo) Activity-Based Costing of Customers (LO 10-3,4) Alters Home Center (AHC) sels renovation and remodeling products to both contractors and individual home owners. One of the services AHC ofters is delvery of the purchased products to the customer's work site. Because not all customers take advantage of the delivery service option, ACH adds 10 percent to the cost of the products purchased to cover the dielivery 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 intem, who had studied activity-based costing, identified the following activalies and the data related to them: The intern selected two customers, who wore trequent customers, to use as an illustration of the system: Wagner Remodeling and Burlington Contractors. The intern collected the following information on these two customers for the most recent six months: Required: a. What would the delivery charge for each customer be under the current policy of to percent of order value? b. What would the activity based conting system estimate as the cost of deivering to each customer? Complete this question by entering your answers in the tabs below. What would the debvery charge for each custamer be under the current policy of 10 percent of crder value? Exercise 10-30 (Algo) Activity-Based Costing of Customers (LO 10-3,4) Aters Home Center (AHC) selis renovotion and remodeling products to both contractors and individual home owners. One of the services AHC offers is delivery of the purchased products to the customer's work site. Because not all customers take advantage of the delivery service opton, ACH adds 10 percent to the cost of the products purchased to cover the delivery cost A business intern spent the summer at ACH. The intern's assignment was to analyze the delivery service and recommend a better way to charge customers for using it. The intern, who had studied activily-based costing. identfied the following activties and the data related to thene The intern selected two customers, who were frequent customers, to use as an illustration of the system: Wagner Remodeling and Burlington Contractors. The intern collected the following information on these two customers for the most recent six months Required: a. What would the delivery charge for each customer be under the current policy of 10 percent of order value? b. What would the activity-based costing system estimate as the cost of delivering to each customer? Complete this question by entering your answers in the tabs below. What would the activity based costing wystem estimate as the cost of delivering to esch customer? Note: Do not round intermed ate calcilations. Round your final answers to nearest whole dollar. Complete this question by entering your answers in the tabs below. What would the activity-based costing system estimate as the cost of delivering to each customer? Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar

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