Exerclse $10-31($Algo$)$ Actlvity$-$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:

Two of Rupert's customers are McLean Designs and Neveux Appliances. Data for orders and deliveries to these two customers follow:

Requlred:

What would the delivery charge for each customer be under the current policy of $6$ 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 delivery charge for each customer be under the current policy of $6$ percent of order value?

Mclean Designs

Neveux Appliances