500 points Marvins Kitchen Supply delivers restaurant suppli

5.00 points Marvin\'s Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. A consultant has analyzed the delivery service using activity- based costing methods and identified four activities. Data on these activities follow Cost Driver Volume Cost Driver S 84,000 105,000 5496.000 7.000 orders Processing order Loading truck Number of orders Number of items Number of orders Number of invoices 217,000 155.000 tems 7,000 orders 6.000 invoices Processing invoice Total overhead Two of Marvin\'s customers are City Diner and Le Chien Chaud. Data for orders and deliveries to these two customers follow City Diner Le Chien Chaud Order value Number of crders Number of tems Number of invoices 60 220 1,000 120 Required a. What would the delivery charge for each customer be under the current policy of 10 percent of order value? City Diner Le Chien Chaud b. Calculate the cost of each activity for both restaurants to determine the total activity- based costing estimate of the cost of delivering to each customer. (Do not round intermediate calculations.) Loading tuck Total cost

Solution

a

b

City Dinner =(80000*10%)	8,000.00
Le Chine Chaud=(90000*10%)	9,000.00