) Hector Gonzales runs the Floral Art Company, which supplies floral arrangements to three large supermarket chains throughout Australia. Management has become concerned about the rising costs associated with the process and dispatch of orders. An activity analysis of the indirect costs identified the following customer-related costs.

		Estimated indirect costs	Total expected use of cost driver*
				Use of cost driver Supermarket customer
Acitvity cost pool	Cost driver
				1	2	3
Orders processing	Number of orders	$200,000	450	300	100	50
Returns processing	Number of returns	$50,000	100	50	25	25
Delivery	Number of deliveries	$100,000	700	400	200	100
Rush orders	Number of rush orders	$70,000	50	10	20	20
Sales visits	Number of visits	$20,000	100	50	25	25

Required:

1. Assign the activity costs to each of the three customers (6 marks)