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Forse Flonst specializes in large floral bouquets for hotels and other commercial spaces. The company has provided the following data concerning its annual overhead costs
Forse Flonst 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 $ 158,000 137,000 $295,000 Distribution of resource consumption: Activity Cost Pools Delivery Wages and salaries Other expenses Making Boucuets 55% 10% 20% 55% Other 25% 3556 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 79,210 bouquets 12 700 deliveries What would be the total overhead cost per delivery according to the activity based costing system? In other words, what would be the overall activity rate for the deliveries activity cost pool? (Round your final answer to 2 decimal places) O $9.28 O $6.71 0 $8.42
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