Marvin’s Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to 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 follow.       Cost Driver Volume Activity Cost Driver Cost Driver Volume Processing order Number of orders $ 42,000     3,000 orders Loading truck Number of items   243,000     135,000 items Delivering merchandise Number of orders   51,000     3,000 orders Processing invoice Number of invoices   34,000     2,000 invoices Total overhead   $ 370,000             Two of Marvin's customers are City Diner and Le Chien Chaud. Data for orders and deliveries to these two customers follow.     City Diner Le Chien Chaud Order value $ 76,000   $ 86,000   Number of orders   56     180   Number of items   400     2,200   Number of invoices   10     220       Required: a. What would the delivery charge for each customer be under the current policy of 10 percent of order value? b. Calculate the cost of each activity for both restaurants to determine the total activity-based costing estimate of the cost of delivering to each customer.

Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8.10 per guest check-in, $24.00 per room cleaning, and $4.00 per served meal (not including food). Tara Stone visited the hotel for a 4-night stay. Tara had 5 meals in the hotel during the visit. Determine the total activity-based cost for Stone's visit during the month. Round your answer to the nearest cent.$fill in the blank 1

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Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity-based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below: Activity Cost Pool Customer deliveries Total Cost $ 313,900 224,400 180,540 Manual order processing Electronic order processing Line item picking 379,500 Total selling and administrative expenses $ 1,098,340 Med Max gathered the data below for two of the many hospitals that it serves-City General and County General: Activity Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked Required 1 City General 20 0 20 120 Required 2 Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items…