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Item 3

Express Travel decides to price delivery services according to the results of a recent activity-based costing (ABC) study. The study indicates Express Travel should charge $16 per order, 1% of annual order value for general delivery costs, $2.50 per item, and $45 for delivery.

A year later, Express Travel collected the following information for three of its customers:

Cost driver	Customer A				Customer B				Customer C
Number of orders		18				8				12
Number of deliveries		10				10				24
Total number of items		2,000				4,000				12,000
Annual order value	$	120,000			$	80,000			$	100,000

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