Exercise 10-31 (Algo) Activity-Based Costing of Customers (LO 10-3, 4) Rupert's Appliance Warehouse (RAW) delivers appliances to retailers throughout the city. The firm adds 6 percent to the cost of the appliances to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. The finance team at RAW 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 order Billing Total overhead Cost Driver Number of orders Number of items Number of orders Number of invoices Activity Cost $ 48,000 243,000 60,000 Cost Driver Volume 4,000 orders 135,000 items 45,000 4,000 orders 3,000 invoices $ 396,000 Two of Rupert's customers are McLean Designs and Neveux Appliances. Data for orders and deliveries to these two customers follow: Order value (total) Number of orders Total number of items Number of invoices Required: McLean Designs $ 84,000 64 800 12 Neveux Appliances $ 94,000 216 1,400 160