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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.
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 activitybased costing methods and identified four activities. Data on these activities follow. Two of Marvin's customers are City Diner and Le Chien Chaud. Data for orders and deliveries to these two customers follow. 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 to each customer. Complete this question by entering your answers in the tabs below. What would the delivery charge for each customer be under the current policy of 10 percent of
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