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Express Travel decides to price delivery service according to the results of a recent activity-based costing (ABC) study. The study indicates Express Travel should charge

Express Travel decides to price delivery service according to the results of a recent activity-based costing (ABC) study. The study indicates Express Travel should charge $16 per order, 1% of the order's value for general delivery costs, $2.50 per item, and $45 for delivery. A year later, Express Travel collected the following information for three of its customers:

Cost driver Customer A Customer B Customer C
Number of orders 18 8 12
Number of deliveries 10 10 24
Number of items 2,000 4,000 12,000
Order value $ 120,000 $ 80,000 $ 100,000

What are the total delivery costs charged to Customer A during the year?

$5,738.

$6,650.

$6,938.

$20,235.

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