Reference no: EM132501268

Pizzeria Gallery specializes in pizza making and delivery. The company uses activity-based costing for all overhead costs using the following data:

Overhead costs:

Wages $48,000

Administrative $62,000

Total $110,000

Resources are consumed as follows:

                                                      Activity Cost Pools

                                                           Pizza Making               Delivery                       Other

Wages & Salaries                            65%                        20%                         15%

Administrative                               20%                         30%                          50%

Activity for the year is:

Activity Cost Pool Activity

Pizza Making 19,000 orders

Delivery 17,000 deliveries

Question 1: The total Delivery cost pool according to the activity-based costing system would be closest to:

Group of answer choices

Option 1: $9,600

Option 2: $18,600

Option 3: $43,600

Option 4: $28,200

Option 5: $38,200