Question: please include atep by step calculations 2) Bountiful Harvest Distribution delivers supplies to small grocers throughout the region. Bountiful currently adds 5% to the order
2) Bountiful Harvest Distribution delivers supplies to small grocers throughout the region. Bountiful currently adds 5% to the order cost to cover the delivery cost. The delivery fee is meant to just cover the cost of delivery. A consultant has analyzed the delivery service using activity-based costing methods and identified four activities. Data on these activities are: Activity Cost Driver Process order number of orders Load truck number of items Deliver goods number of orders Process invoice number of invoices Total overhead Cost Driver Volume $50,000 4,000 orders 100,000 80,000 items 60,000|4,000 orders 48,0006.000 invoices $258,000 Three of Bountiful's customers are Rosy's Corner Market, Katy's Fine Foods, and Amy's City Market. Below are data on orders and deliveries to these three customers: Order value Number of orders Rosy's Katy's Amy's $48,000 $64,000 $120,000 50 100 25 550 1.600 1,7501 12 120 18 Number of items Number of invoices Required: What would be the delivery charge for each customer under the current policy of 5% of order value? Rosy's Katy's Amy's What would the activity-based costing system estimate as the cost of delivering to each customer? Rosy's Katy's Amy's
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