Fogle 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: 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:

-What would be the total overhead cost per delivery according to the activity based costing system? In other words,what would be the overall activity rate for the deliveries activity cost pool? (Round to the nearest whole cent. )
A)$4.71
B)$5.14
C)$3.43
D)$6.00

Question

Fogle 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:  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:

-What would be the total overhead cost per delivery according to the activity based costing system? In other words,what would be the overall activity rate for the deliveries activity cost pool? (Round to the nearest whole cent. )
A)$4.71 
B)$5.14 
C)$3.43 
D)$6.00

Quizplus · Accepted Answer

Allocations to the Delivery activity cost pool:
 11eaa48f_7b90_d859_9e4a_d1e8fe3ffd4e_TB2485_00 Overhead cost per delivery = Total cost F1F1F1S1F1F1F10 Number of deliveries
= $36,000 F1F1F1S1F1F1F10 7,000 deliveries = $5.14 per delivery

Fogle Florist Specializes in Large Floral Bouquets for Hotels and Other