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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

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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 and its activity based costing system Overhead costs: Wages and salaries Other expenses Total $ 109,000 79,000 $ 180,000 Distribution of resource consumption Activity Cost Pools Making Bouquets Delivery 50 35 400 501 Wages and salaries Other expenses Other 150 100 Total 1000 1001 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 Making bouquets 70,575 bouquets Delivery 10,500 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 to the nearest whole cent) Multiple Choice O $240 O $6.97 S820

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