Republic Industries decides to price delivery service according
to the results of a recent activity-based costing (ABC) study. The
study indicates Republic should charge $7 per order, 3% of the
order’s value for general delivery costs, $1.20 per item, and $20
for delivery. A year later, Republic collected the following
information for two of its best customers: Cost driver Customer C
Customer D Number of orders 15 7 Number of deliveries 10 10 Number
of items 2,100 4,200 Order value $ 115,000 $ 70,000 What are the
total delivery costs charged to Customer C during the year? $6,275.
$5,289. $7,340. $7,389.