Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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: Wages and salaries Other expenses Total Distribution of resource consumption $ 80,000 40,000 $ 120,000 Wages and salaries Other expenses Making Bouquets 559 50% Activity Cost Pools Delivery 35 201 Other Total 10% 100% 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 7,000 deliveries What would be the total overhead cost per delivery according to the activity based costing system? In her words, what would be the overall activity rate for the deliveries activity cost pool? (Round to the nearest whole cent.)

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

Step: 3

blur-text-image

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

Management Information Systems Managing the Digital Firm

Authors: Ken Laudon, Jane P. Laudon

13th edition

133050696, 978-0133050691

More Books

Students also viewed these Accounting questions

Question

BPR always involves automation. Group of answer choices True False

Answered: 1 week ago