Reference no: EM132669061

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 $180,000 typically perform both tasks; other firm-wide overhead is expected to total $70,000.

These costs are allocated as follows:

                                     Bouquet Production          Delivery             Other
Company personnel         60 %                         30 %                10 %
Other overhead              50 %                           35 %              15 %

Skyline anticipates making 20,000 bouquets and 4,000 deliveries in the upcoming year.

Problem 1: What is the cost of the company personnel's wages and salaries and other overhead that would be charged to each bouquet? (your answer should be under $10.00 per bouquet)