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Help Save Republic Industries decides to price delivery services according to the results of a recent activity based costing (ABC) study. The study indicates Republic
Help Save Republic Industries decides to price delivery services according to the results of a recent activity based costing (ABC) study. The study indicates Republic should charge $9 per order, 3% of annual order value for general delivery costs, $1.35 per item, and $35 for delivery A year later, Republic collected the following information for two of its best customers Cost driver Number of orders Number of deliveries Total number of items Annual order value Customer C 15 10 Customer D 9 18 1.580 3.000 $165,000 $98.000 What are the total delivery costs charged to Customer D during the year? Multiple Choice $7,460 $4,481 $7,100. $7181
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