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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 $15

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 $15 per order, 8% of the order's value for general delivery costs, $7.00 per item, and $37 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 25 15
Number of deliveries 17 17
Number of items 2,500 4,500
Order value $170,000 $130,000

What are the total delivery costs charged to Customer D during the year?

$42,529.

$42,125.

$42,754.

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