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 $ 159,000 Other expenses 62,000 Total $ 221,000 Distribution of resource consumption: Activity Cost Pools Total Making Bouquets Delivery Other Wages and salaries 45% 20% 35% 100% Other expenses 45% 50% 5% 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 Activity Making bouquets 124,312 bouquets Delivery 8,200 deliveries What would be the total overhead cost per delivery according Multiple Choice $8.52 $7.66 $5.95 $7.23
Foster Florist specializes in large floral bouquets for hotels and other commercial spaces. The company has provided the following data concerning its annual
Multiple Choice
$8.52
$7.66
$5.95
$7.23
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