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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 $13
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 $13 per order, 6% of the order's value for general delivery costs, $5.00 per item, and $35 for delivery. A year later, Yellow collected the following information for two of its best customers:
Cost Driver | Customer C | Customer D |
Number of orders | 23 | 13 |
Number of deliveries | 15 | 15 |
Number of items | 2,300 | 4,300 |
Order value | $150,000 | $110,000 |
What are the total delivery costs charged to Customer D during the year?
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