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Foster Florist specializes in large floral bouquets for hotels and other commercial spaces. The company has provided the following data concerning its annual overhead costs
Foster 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 $162,000 Wages and salaries 61,000 Other expenses $223,000 Total Distribution of resource consumption: Activity Cost Pools Making Delivery Other Total Bouguets 100 Wages and salaries Other expenses 45% 25 30% 30 451 25 1008 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 140,308 bouquets Making bougquets Delivery 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 overalll activity rate for the deliveries activity cost pool? (Round to the nearest whole cent.) Multiple Choice $4.92 $3.64 $6.21 $5.35
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