Daffodil Cosmetics has six customers who buy all the cosmetics it produces. One large customer purchases 400,000 units per year, placing four orders per year. The other five customers order 500,000 units in total, placing 200 orders per year. At the end of the current year, Daffodil has incurred the order filling cost of $510,000. Which of the following is the order filling cost assigned to the large customer using the activity-based costing method?
$9,000

$12,000

$10,000

$6,000

Answer rating: 100% (QA)

Solution c 10000 Ordering filling cost per order Order fil... View the full answer