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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
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 $1.60 per item, and $30 for delivery. A year later, Express Travel collected the following information for three of its customers: Cost driver Number of orders Number of deliveries Total number of items Annual order value Customer A 31 10 3,000 $133,000 Customer B 21 10 5,000 $93,000 Customer c 25 20 13,000 $113,000 What are the total delivery costs charged to Customer B during the year? Multiple Choice O $15,640 O $9.650 $11.700 $7,550
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