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TB MC Qu. 7-103 Foster Florist specializes ... Foster Florist specializes in large floral bouquets for hotels and other commercial spaces. The company has provided

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TB MC Qu. 7-103 Foster Florist specializes ... 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 $122,000 89,000 $211,000 Total Distribution of resource consumption: Activity Cost Pools I Wages and salaries Other expenses Making Bouquets 65% 25% Delivery 20% 65% Other 15% 10% 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 77,519 bouquets 11,300 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 $5.57 Multiple Choice O $5.57 O $6.85 O $7.28 O $8.14

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