# Cost 3 - Yellow Industries decides to price delivery...

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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 \$8 per order, 2% of the order's value for general delivery costs, \$1.25 per item, and \$30 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 18 8 Number of deliveries 10 10 Number of items 2,000 4,000 Order value \$120,000 \$80,000 What are the total delivery costs charged to Customer D during the year? Answer Selected Answer: \$6,964 Correct Answer: \$6,964 Response Feedback: \$8(8) + .02(\$80,000) + \$1.25(4,000) + \$30(10) = \$6,964 Question 2 2 out of 2 points Based on the information in question #1 what are the total delivery costs charged to Customer C during the year? Answer Selected Answer: \$5,344 Correct Answer: \$5,344 Response Feedback: Question 3 2 out of 2 points

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Gundy Press reports the following information about resources. At the beginning of the year, Gundy estimated it would
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## This note was uploaded on 12/09/2011 for the course COST ACCOU 101 taught by Professor Dennis during the Spring '11 term at Post.

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Cost 3 - Yellow Industries decides to price delivery...

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