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 A during the year?
A)$5,738.
B)$6,650.
C)$6,938.
D)$20,235.

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 A during the year?
A)$5,738. 
B)$6,650. 
C)$6,938. 
D)$20,235.

Quizplus · Accepted Answer

The Answer of 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 A during the year?
A)$5,738. 
B)$6,650. 
C)$6,938. 
D)$20,235.

Folly Beach Industries Decides to Price Delivery Service According to the Results