24) Express Travel decides to price delivery service according to the results of...
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Accounting
24)
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 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 C during the year?
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