Republic Industries decides to price delivery services according to the results of a recent activity-based...
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Republic Industries decides to price delivery services according to the results of a recent activity-based costing (ABC) study. The study indicates Republic should charge $9 per order, 2% of annual order value for general delivery costs, $1.35 per item, and $20 for delivery A year later, Republic collected the following information for two of its best customers: Cost driver Number of orders Number of deliveries Total number of items Annual order value Customer C 18 10 2,400 $200,000 Customer D 9 10 4,800 $75,000 What are the total delivery costs charged to Customer C during the year? M $7,602 $6,761. $8,180 $8 261
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