Item 5

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 $18 per order, 2% of annual order value for general delivery costs, $2.60 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 B				Customer C
Number of orders		19				9				13
Number of deliveries		10				10				30
Total number of items		1,000				3,000				11,000
Annual order value	$	121,000			$	81,000			$	101,000

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

• $11,532.

• $9,982.

• $9,082.

• $9,900.