Express Travel decides to price delivery services according to the results of a recent activity-based costing (ABC) study. The study indicates Express Travel
should charge $19 per order, 1% of annual order value for general delivery costs, $3.00 per item, and $40 for delivery.
A year later, Express Travel collected the following information for three of its customers:
Cost driver Customer A Customer B Customer C
Number of orders 23 13 17
Number of deliveries 10 10 20
Total number of items 1,000 3,000 11,000
Annual order value $ 125,000 $ 85,000 $ 105,000
What are the total delivery costs charged to Customer B during the year?
$11,541
$10,497
$9,900
$9,197