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What would be the total overhead cost per bouquet

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TB MC Qu. 06-63 Forse Florist specializes...

Forse Florist specializes in large floral bouquets for hotels and other commercial spaces. The company has provided the following data concerning its annual overhead costs and its activity based costing system:

Overhead costs: Wages and salaries $ 158,000 Other expenses 86,000 Total $ 244,000

Distribution of resource consumption: Activity Cost Pools Making

Bouquets Delivery Other Total Wages and salaries 65% 25% 10% 100% Other expenses 45% 50% 5% 100%

The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs.

The amount of activity for the year is as follows:

Activity Cost Pool Activity Making bouquets 80,800 bouquets Delivery 12,800 deliveries

What would be the total overhead cost per bouquet according to the activity based costing system? In other words, what would be the overall activity rate for the making bouquets activity cost pool? (Round your final answer to 2 decimal places)

Reference no: EM132404552

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