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What the cost of wages and salaries and other overhead

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Question - Company 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:

 

Production

Delivery

Other

Wages and salaries

60%

30%

10%

Other overhead

50%

35%

15%

Company estimates making 20 000 bouquets and 4 000 deliveries in the upcoming year.

Required - What the cost of wages and salaries and other overhead that would be charged to each delivery?

Reference no: EM133117764

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