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Rose Florist specializes in large floral bouquets for hotels and other commercial spaces. The company has provided the following data concerning its annual overhead costs
Rose 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 activitybased costing system:
Overhead costs:
Wages and salaries $
Other expenses
Total $
Distribution of Resource Consumption:
Activity Cost Pools
Making Bouquets Delivery Other
Wages and salaries
Other expenses
The "Other" activity cost pool consists of the costs of idle capacity and organizationsustaining costs. The amount of activity for the year is as follows:
Activity Cost Pool Activity
Making bouquets bouquets
Delivery deliveries
What would be the total overhead cost per bouquet according to the activitybased costing system, rounded to the nearest whole cent? In other words, what would be the overall activity rate for the Making Bouquets activity cost pool?
Multiple Choice
$
$
$
$
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