Question - Let's try an activity based costing problem this time:
A company uses activity based pricing. The pricing structure is to charge customers the direct cost of the product they order with a markup of 30% on direct costs plus the cost of the services that are provided. The service costs are $8.00 per order, $12.00 for each product that is ordered, and $2.00 per pound for shipping.
Ozuma Industries makes 10 orders for goods with a direct cost of $10,000. They order 80 different products that weigh a total of 1,800 lbs. What is the total price paid by Ozuma?