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, 3% of annual order value for general delivery costs, $1.40 per item, and $30 for delivery. A year later, Republic collected the following information for two of its best customers: Customer C Customer D 17 8 10 10 Cost driver Number of orders Number of deliveries Total number of items Annual order value 2,200 $195,000 4,400 $70,000 What are the total delivery costs charged to Customer C during the year?

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, 3% of annual order value for general delivery costs, $1.40 per item, and $30 for delivery. A year later, Republic collected the following information for two of its best customers: Customer C Customer D 17 8 10 10 Cost driver Number of orders Number of deliveries Total number of items Annual order value 2,200 $195,000 4,400 $70,000 What are the total delivery costs charged to Customer C during the year?

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Description: 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, 3% of annual order value for generaldelivery costs, $1.40 per ite

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 18E

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