Express Travel decides to price delivery service according to the results of a recent activity-based costing (ABC) study. The study indicates Express Travel should charge $16 per order, 1% of the order's 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
Number of items		2,000				4,000				12,000
Order value	$	120,000			$	80,000			$	100,000

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

$5,738.

$6,650.

$6,938.

$20,235.

Answer rating: 100% (QA)

6938 Delivery Cost 16 Number of orders 1 Oder Value 2... View the full answer