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What are the total delivery costs charged to customer c

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Reference no: EM132860933

Question - 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 $8 per order, 2% of annual order value for general delivery costs, $1.25 per item, and $30 for delivery.

A year later, Republic collected the following information for two of its best customers:

Cost driver

Customer C

Customer D

Number of orders

18

8

Number of deliveries

10

10

Total number of items

2,000

4,000

Annual order value

$120,000

$80,000

Required - What are the total delivery costs charged to Customer C during the year?

Reference no: EM132860933

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