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...


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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<br>costs and its activity-based costing system:<br>Overhead costs:<br>Wages and salaries<br>$ 70,000<br>Other expenses<br>50,000<br>Total<br>$ 120,000<br>Distribution of resource consumption:<br>Activity Cost Pools<br>Making<br>Bouquets<br>Delivery<br>Other<br>Total<br>Wages and salaries<br>Other expenses<br>70%<br>20%<br>10%<br>100%<br>45%<br>25%<br>30%<br>100%<br>The

Extracted 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 $ 70,000 Other expenses 50,000 Total $ 120,000 Distribution of resource consumption: Activity Cost Pools Making Bouquets Delivery Other Total Wages and salaries Other expenses 70% 20% 10% 100% 45% 25% 30% 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 40,000 bouquets 1,000 deliveries What would be the total overhead cost per bouquet according to the activity-based costing system? In other words, what would be the overall activity rate for the making bouquets activity cost pool? (Round to the nearest whole cent.)
Multiple Choice<br>$1.79<br>$2.10<br>$1.35<br>$1.73<br>

Extracted text: Multiple Choice $1.79 $2.10 $1.35 $1.73

Jun 10, 2022
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