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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: Other expenses Wages and salaries $ 70,000 50,000 $ 120,000 Total Distribution of resource consumption: Wages and salaries Other expenses Activity Cost Pools Making Bouquets 70% 45% Delivery 20% Other Total 10% 100% 258 30% 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 40,000 bouquets 1,000 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.) Multiple Choice O $1.79 $1.73 $2.10 $1.35
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