Mathematics · Activity Based Costing
Themens Co uses activity-based costing. The budgeted distribution costs for the next year are: Transport costs: $2,631,200 Order processing: $1,573,000 Total distribution costs: $4,204,200 It is estimated that 325,000 orders will be processed in the next year and that the delivery vehicles will travel 1,495,000 km. A customer has indicated that 138 orders, each requiring an average journey of 122 km, will be placed next year. What is the distribution cost for this customer (to the nearest $)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$47,342
- 2$38,891
- 3$30,299✓
- 4$1,785
Correct answer
$30,299
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