Exercise 7-14 Activity-Based Customer-Driven Costs Suppose that Lone Star Designs has two classes of distributors: class A distributors and OBJECTIVE 2 class B distributors. The class A distributor places small, frequent orders, and the class B distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Lone Star provides the following information about customer-related activities and costs for the most recent quarter: Class B Distributors Sales orders Sales calls Service calls Average order size Manufacturing cost/unit Customer costs: Processing sales orders Selling goods Servicing goods Total Class A Distributors 1.000 100 500 2.500 S100 100 100 250 25,000 S100 $4,400,000 1,600,000 1,500,000 $7,500,000 Part 1: The allocation to Class A Distributor is $ The allocation to Class B Distributor is $ A/ Part 2: The ordering rate is $ A/ per sales order. The selling rate is $ per sales call. The service rate is $ per servie call. The total cost for Class A Distributors is $ AJ The total cost for Class B Distributors is $