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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 $14
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 $14 per order, 8% of the order's value for general delivery costs, $7.25 per item, and $36 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 | 24 | 14 |
Number of deliveries | 16 | 16 |
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? |
$45,126.
$34,122.
$45,322.
$44,746.
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