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Posted: February 8th, 2019

BUAD 285A-Fogle Florist specializes in large floral bouquets

Fogle 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$82,000 Other expenses74,000 Total$156,000 Distribution of resource consumption: Activity Cost Pools MakingBouquetsDeliveryOtherTotal Wages and salaries45% 40% 15% 100% Other expenses35% 55% 10% 100% The “Other” activity cost pool consists of the costs of idle capacity and organization-sustaining costs.The amount of activity for the year is as follows: Activity Cost PoolActivity Making bouquets73,020 bouquets Delivery16,800 deliveries What would be the total overhead cost per bouquet according to the activity based costing system? In other words, what would be the overall activity rate for the making bouquets activity cost pool? (Round to the nearest cent.)Which below is correct answer?$.91 $.84 $.76 $.86

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