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Marvin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds lo 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 lo percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to ewer 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: Two of Marvin's customers are City Diner and lessthanorequalto Chien Chaud. Data for orders and deliveries to these two customers follow: What would the delivery charge for each customer be under the current policy of 10 percent of order value? What would the activity-based costing system estimate as the cost of delivering to each customer? How could Marvin's use the information identified by the new costing method to manage costs

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