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Yellow Industries decides to price delivery service according to the results of a recent activity-based costing (ABC) study. The study indicates Yellow should charge $16
Yellow Industries decides to price delivery service according to the results of a recent activity-based costing (ABC) study. The study indicates Yellow should charge $16 per order, 9% of the order's value for general delivery costs, $8.00 per item, and $38 for delivery. A year later, Yellow collected the following information for two of its best customers: |
Cost driver | Customer C | Customer D |
Number of order | 26 | 16 |
Number of deliveries | 18 | 18 |
Number of items | 2,600 | 4,600 |
Order value | $180,000 | $140,000 |
What are the total delivery costs charged to Customer D during the year? |
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