Est. Length: 1:00:00 LAI MAN LAU: Attempt 1 Page 1: Overhead costs: 3 Wages and salaries $70,000 Other expenses 40,000 Total $110,000 6 Distribution of resource consumption: Co Activity Cost Pools Making Delivery Other Total 10 11 12 Wreaths Wages and 70% 20% 10% 100% salaries 13 14 15 Other expenses 45% 25% 30% 100% 16 17 18 The "Other" activity cost pool consists of the costs of idle capacity and organization- sustaining costs. The amount of activity for the year is as follows: Activity Cost Pool Activity 19 20 Making Wreaths 40,000 wreaths Delivery 4,000 deliveries What would be the total overhead cost per wreath according to the activity based costing system? In other words, what would be the overall activity rate for the wreath making activity cost pool? (Round to the nearest whole cent.) 1) $1.58 2) $1.24 ( 3) $1.93 4) $1.68