Bountiful Harvest Distribution Delivers Supplies to Small Grocers Throughout the Region

Bountiful Harvest Distribution delivers supplies to small grocers throughout the region. Bountiful currently adds 5% to the order cost to cover the delivery cost. The delivery fee is meant to just 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 are:
$\begin{array}{ll}\text { Activity } & \text { Cost Driver } & \text { Cost }& \text { Driver Volume}\\\text { Process order } & \text { number of orders } &\$50,000& \text { 4,000 orders}\\\text { Load truck } & \text { number of items }&100,000& \text { 80,000 items } \\\text { Deliver goods } & \text { number of orders }&60,000& \text { 4,000 orders } \\\text { Process invoice } & \text { number of invoice } &48,000& \text { 6,000 invoices}\\\text { Total overhead } &&\$258,000\end{array}$
Three of Bountiful's customers are Rosy's Corner Market, Katy's Fine Foods, and Amy's City Market. Below are data on orders and deliveries to these three customers:
$$\begin{array} { l r r r } & \text { Rosy's } & \text { Katy's } &{ \text { Amy's } } \\\text { Order value } &\$ 4 8 , 0 0 0 & \$ 6 4 , 0 0 0 &\$ 120,000 \\\text { Number of orders } & 50 & 100 & 25 \\\text { Number of items } & 550 & 1,600 & 1,750 \\\text { Number of invoices } & 12 & 120 & 18\end{array}$$
Required:
(a) What would be the delivery charge for each customer under the current policy of 5% of order value?
(b) What would the activity-based costing system estimate for the cost of delivering to each customer?