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What are the total delivery costs charged to Customer C

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Question - 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

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

Reference no: EM132862458

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