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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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