Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fogle Florist specializes in large floral bouquets for hotels and other commercial spaces. The company has provided the following data concerning its annual overhead costs

Fogle Florist specializes in large floral bouquets for hotels and other commercial spaces. The company has provided the following data concerning its annual overhead costs and its activity based costing system:

image text in transcribed

Fogle Florist specializes in large floral bouquets for hotels and other commercial spaces. The company has provided the following data concerning its annual overhead costs and its activity based costing system: | Overhead costs: | Wages and salaries Other expenses Total $82,000 74,000 $156,000 Distribution of resource consumption: Activity Cost Pools Making Bouquets | | Delivery Other Wages and salaries 45% 40% 15% Other expenses 35% 55% 10% Total 100% 100% 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 Making bouquets | Delivery Activity 73,020 bouquets 16,800 deliveries What would be the total overhead cost per bouquet according to the activity based costing system? In other words, what would be the overall activity rate for the making bouquets activity cost pool? (Round to the nearest whole cent.) O $.76 per bouquets O $.86 per bouquets O $.84 per bouquets O $.91 per bouquets

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Complete Guide To Perform Internal And External Audits

Authors: Tim Power

1st Edition

1801490031, 978-1801490030

More Books

Students also viewed these Accounting questions

Question

c. What were the reasons for their move? Did they come voluntarily?

Answered: 1 week ago

Question

5. How do economic situations affect intergroup relations?

Answered: 1 week ago