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%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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