Astro's customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 10,800 calls and incurred costs of $289,440. Of these calls, 4,000 were for the company's wholesale operation; the remainder were for the retail division. Costs allocated to the retail division under activity-based costing system should amount to:

a $0.

b $289,440.

c $107,200.

d $182,240.

e $191,800.

[The following information applies to the questions displayed below.] Riverside Florists uses an activity-based costing system to compute the cost of making floral bouquets and delivering the bouquets to its commercial customers. Company personnel who earn $200,000 typically perform both tasks; other firm-wide overhead is expected to total $70,000. These costs are allocated as follows:

	Bouquet Production	Delivery	Other
Wages and salaries	50%	40%	10%
Other overhead	60%	25%	15%

Riverside anticipates making 25,000 bouquets and 3,000 deliveries in the upcoming year.

The cost of wages and salaries and other overhead that would be charged to each bouquet made is closest to:

a $12.05.

b $7.28.

c $10.80.

d some other amount.

e $5.68.

The cost of wages and salaries and other overhead that would be charged to each delivery is closest to:

a $39.62.

b some other amount.

c $33.18.

d $32.50.

e $53.50.