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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 $8
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 $8 per order, 3% of annual order value for general delivery costs, $1.40 per item, and $30 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 17 10 2,200 $195,000 Customer D 8 10 4,400 $70,000 What are the total delivery costs charged to Customer C during the year? Multiple Choice $8,624. $8,560. $9,366. $6,524
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