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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
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 $9 per order, 3% of annual order value for general delivery costs, $120 per item, and $20 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 16 10 1,800 $180,000 Customer 0 9 10 3,660 $85,000 What are the total delivery costs charged to Customer D during the year? Multiple Choice 57.904 $7,904 $4,601 $7,070 $7151
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