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Marvin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost.

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Marvin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. A consultant has analyzed the delivery service using activity based costing methods and identified four activities. Data on these activities follow. Activity Processing order Loading truck Delivering merchandise Processing invoice Total overhead cout Driver Number of orders Number of Items Number of ordere Number of invoices Cost Driver Volume CON Driver Volume $ 84,000 6,000 orders 370,000 185,000 itent 102,000 6,000 orders 85.000 5,000 invoices $641,000 Two of Marvin's customers are City Diner and Le Chien Chaud. Data for orders and deliveries to these two customers follow. Order value Number of orders Number of itens Number of invoices city Diner Le Chien Chaud $86,000 $96,000 66 280 900 1,600 1 14 180 Required: a. What would the delivery charge for each customer be under the current policy of 10 percent of order value? b. Calculate the cost of each activity for both restaurants to determine the total activity-based costing estimate of the cost of delivering to each customer Complete this question by entering your answers in the tabs below. Required A Required B What would the delivery charge for each customer be under the current policy of 10 percent of order value? Delivery Charge Per Customer City Diner Le Chien Chaud Required A Required B > Complete this question by entering your answers in the tabs below. Required A Required Calculate the cost of each activity for both restaurants to determine the total activity-based costing estimate of the cost of delivering to each customer. (Do not round intermediate calculations.) City Diner Le Chien Chaud Processing order Loading truck Delivering merchandise Processing invoice Total cost

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