Folly Beach Industries decides to price delivery service according to the result

Question

Folly Beach Industries decides to price delivery service according to the results of a recent activity-based costing (ABC) study. The study indicates Folly Beach should charge $16 per order, 1% of the order's value for general delivery costs, $2.50 per item, and $45 for delivery. A year later, Folly Beach collected the following information for three of its customers:

What are the total delivery costs charged to Customer B during the year?

Folly Beach Industries decides to price delivery service according to the results of a recent activity-based costing (ABC) study. The study indicates Folly Beach should charge $16 per order, 1% of the order's value for general delivery costs, $2.50 per item, and $45 for delivery. A year later, Folly Beach collected the following information for three of its customers:

Folly Beach Industries decides to price delivery service according to the results of a recent activity-based costing (ABC) study. The study indicates Folly Beach should charge $16 per order, 1% of the order's value for general delivery costs, $2.50 per item, and $45 for delivery. A year later, Folly Beach collected the following information for three of its customers: What are the total delivery costs charged to Customer B during the year? $13,490. $11,378. $10,800. $10,578.

Explanation / Answer

$11,378.

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