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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 Distribution of resource consumption: Activity Cost Pool. Making bouquets Delivery Multiple Choice с $ 143,000 60,000 $ 203,000 $8.01 Making Bouquets 55% 40% Wages and salaries Other expenses 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: $758 Activity Cost Pools. Delivery 35% 30% 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? Note: Round to the nearest whole cent. Other 10% 30% Activity 58,325 bouquets 8,500 deliveries Total 100% 100%

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 Distribution of resource consumption: Activity Cost Pool. Making bouquets Delivery Multiple Choice с $ 143,000 60,000 $ 203,000 $8.01 Making Bouquets 55% 40% Wages and salaries Other expenses 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: $758 Activity Cost Pools. Delivery 35% 30% 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? Note: Round to the nearest whole cent. Other 10% 30% Activity 58,325 bouquets 8,500 deliveries Total 100% 100%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 Distribution of resource consumption: Wages and salaries Other expenses Activity Cost Pool Making bouquets Delivery Multiple Choice с $ 143,000 60,000 $ 203,000 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: $8.01 Making Bouquets 55% 40% $758 Activity Cost Pools Delivery 35% 30% Activity 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? Note: Round to the nearest whole cent. Other 10% 30% 58,325 bouquets 8,500 deliveries Total 100% 100%
Transcribed Image Text: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 Distribution of resource consumption: Wages and salaries Other expenses Activity Cost Pool Making bouquets Delivery Multiple Choice с $ 143,000 60,000 $ 203,000 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: $8.01 Making Bouquets 55% 40% $758 Activity Cost Pools Delivery 35% 30% Activity 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? Note: Round to the nearest whole cent. Other 10% 30% 58,325 bouquets 8,500 deliveries Total 100% 100%
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