Yellow Industries decides to price delivery service according to the results of a recent activity-based costing (ABC) study. The study indicates Yellow should charge $13 per order, 6% of the order's value for general delivery costs, $5.00 per item, and $35 for delivery. A year later, Yellow collected the following information for two of its best customers:
|
Cost Driver
|
Customer C
|
Customer D
|
|
Number of orders
|
23
|
13
|
|
Number of deliveries
|
15
|
15
|
|
Number of items
|
2,300
|
4,300
|
|
Order value
|
$150,000
|
$110,000
|
What are the total delivery costs charged to Customer D during the year?