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Question - Skyline Florists uses an activity-based costing system to compute the cost of making floral bouquets and delivering the bouquets to its commercial customers. Company personnel who earn $220,000 typically perform both tasks; other firm-wide overhead is expected to total $30,000. These costs are allocated as follows:
Bouquet Production Delivery Other Wages and salaries 50% 40% 10% Other overhead 50% 35% 15%
Skyline anticipates making 26,000 bouquets and 4,000 deliveries in the upcoming year.
Required - Find the cost of wages and salaries and other overhead that would be charged to each bouquet made?
a. $4.81.
b. $6.41.
c. $9.62.
d. $10.87.
e. None of the answers is correct.
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