Question
Express Travel decides to price delivery services according to the results of a recent activity-based costing (ABC) study The study indicates Express Travel should
Express Travel decides to price delivery services according to the results of a recent activity-based costing (ABC) study The study indicates Express Travel should charge $20 per order, 1% of annual order value for general delivery costs, $1.80 per item, and $40 for delivery A year later, Express Travel collected the following information for three of its customers Cost driver Customer A Customer Customer C Nunber of orders. 33 23 27 Number of deliveries 10 10 25 Total number of items. Annual order value 1,000 $135,000 3,000 11,000 $95,000 $115,000 What are the total delivery costs charged to Customer B during the year? Muffle Choice O O $4010 LA $9,000 5720
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