QUESTION 2:

Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Cost Pool Setting up batches Processing customer orders Assembling products Activity Rate $59.86 per batch $ 73.14 per customer order $ 4.55 per assembly hour Data concerning two products appear below: Number of batches Number of customer orders Number of assembly hours Product Product K91B F650 95 66 45 59 499 906 How much overhead cost would be assigned to Product K91B using the activity-based costing system? (Round your intermediate calculations and final answers to 2 decimal places.) Multiple Choice $11,248.45 $101,236.05 O $5,686.70 $137.55 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 $ 165,000 71,000 $ 236,000 Total Distribution of resource consumption: Activity Cost Pools Wages and salaries Other expenses Making Bouquets 45% 35% Delivery 20% 50% Other 35% 15% 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 42,170 bouquets 8,900 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 $5.99 O $7.27 $7.70 $8.56