Kamber Designs Produces Floral Bouquets for Commercial Businesses (I During June, the Company Made 1,500 Bouquets Using 1,100 Designs
Kamber Designs produces floral bouquets for commercial businesses (i.e.hotels) and uses an activity-based costing system.The company estimated that it would design 15,000 bouquets, make 2,000 deliveries totaling 25,000 miles, and accept 300 online orders.Data concerning overhead costs and activity pools is as follows: During June, the company made 1,500 bouquets using 1,100 designs, made 325 deliveries and accepted 45 online orders.Using activity-based costing, what is the approximate overhead cost per bouquet during June?
A) $7.92
B) $5.81
C) $5
D) None of these answer choices are correct.
Correct Answer:
Verified
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