Bountiful Harvest Distribution Delivers Supplies to Small Grocers Throughout the Region.Bountiful

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:

$$\begin{array} { | l | l | r | l | } \hline \text { Acturity } & \text { Cost Driver } & \text { Cost } & \begin{array} { l } \text { Driver } \\\text { Volume }\end{array} \\\hline \text { Process order } & \text { number of orders } & \$ 50,000 & 4,000 \text { orders } \\\hline \text { Load tuck } & \text { number of items } & 100,000 & 80,000 \text { items } \\\hline \text { Deliver goods } & \text { number of orders } & 60,000 & 4,000 \text { orders } \\\hline \begin{array} { l } \text { Process } \\\text { invoice }\end{array} & \begin{array} { l } \text { number of } \\\text { invoices }\end{array} & 48,000 & 6,000 \\&&&\text { invoices }\\\hline \begin{array} { l } \text { Total } \\\text { overhead }\end{array} &&\underline{ \$ 258,000 }& \\\hline\end{array}$$ 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: $$\begin{array} { | l | r | r | r | } \hline & \text { Rosy's } & \text { Katy's } & \text { Amy's } \\\hline \text { Order value } & \$ 48,000 & \$ 64,000 & \$ 120,000 \\\hline \text { Number of orders } & 50 & 100 & 25 \\\hline \text { Number of items } & 550 & 1,600 & 1,750 \\\hline \text { Number of invoices } & 12 & 120 & 18 \\\hline\end{array}$$
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 as the cost of delivering to each customer?