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Explain what is the approximate cost per delivery

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Question: Frannie's Florist produces floral bouquets for commercial businesses (i.e. hotels) and uses an activity-based costing system. Data concerning overhead costs and activity pools is as follows:

Activity Cost Pool Estimated Wages Estimated "Other"

Bouquets $48,000 $18,000

Deliveries $24,000 $10,000

Other $8,000 $12,000

Total $80,000 $40,000

During the year Frannie made 60,000 bouquets and made 5,000 deliveries. Using activity-based costing what is the approximate cost per delivery?

Reference no: EM132719203

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