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:

Overhead costs:
Wages and salaries	$158,000
Other expenses	137,000
Total	$295,000

Distribution of resource consumption:
	Activity Cost Pools
	Making Bouquets	Delivery	Other	Total
Wages and salaries	55%	20%	25%	100%
Other expenses	10%	55%	35%	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	79,210 bouquets
Delivery	12,700 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 to the nearest whole cent.)

$1.32 per bouquets

$1.27 per bouquets

$1.25 per bouquets

$1.17 per bouquets

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:

Overhead costs:
Wages and salaries	$143,000
Other expenses	60,000
Total	$203,000

Distribution of resource consumption:
	Activity Cost Pools
	Making Bouquets	Delivery	Other	Total
Wages and salaries	55%	35%	10%	100%
Other expenses	40%	30%	30%	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	58,325 bouquets
Delivery	8,500 deliveries

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.)

$7.58 per delivery

$6.30 per delivery

$8.87 per delivery

$8.01 per delivery

Ollivier Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow:

Overhead costs:
Equipment expense	$117,000
Indirect labor	$11,400

Distribution of Resource Consumption Across Activity Cost Pools:
	Activity Cost Pools
	Processing	Supervising	Other
Equipment expense	0.30	0.50	0.20
Indirect labor	0.30	0.40	0.30

Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:

Activity:
	MHs (Processing)	Batches (Supervising)
Product C4	16,500	1,290
Product L7	1,200	1,080
Total	17,700	2,370

The activity rate for the Supervising activity cost pool under activity-based costing is closest to:

$10.96 per batch

$54.18 per batch

$21.91 per batch

$26.61 per batch

Ollivier Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow:

Overhead costs:
Equipment expense	$64,000
Indirect labor	$13,800

Distribution of Resource Consumption Across Activity Cost Pools:
	Activity Cost Pools
	Processing	Supervising	Other
Equipment expense	0.60	0.20	0.20
Indirect labor	0.60	0.30	0.10

Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:

Activity:
	MHs (Processing)	Batches (Supervising)
Product C4	12,000	640
Product L7	1,330	1,010
Total	13,330	1,650

What is the overhead cost assigned to Product L7 under activity-based costing? (Round your intermediate calculations to 2 decimal places and your final answer to nearest whole dollar.)

$4,655

$15,028

$10,373

$25,006

Umanzor Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $52,200; Supervising, $36,700; and Other, $19,200. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:

	MHs (Processing)	Batches (supervising)
Product S5	11,700	1,030
Product F5	1,270	900
Total	12,970	1,930

The activity rate for the Processing activity cost pool under activity-based costing is closest to:

$3.70 per MH

$4.02 per MH

$8.45 per MH

$4.32 per MH

Answer rating: 100% (QA)

1 Total cost of Making Bouquet 158000 x 55 137000 x 10 100600 Total number of activity of making bou... View the full answer