Question: Riverside Florists uses an activity-based costing system to compute the cost of making floral bouquets and delivering the bouquets to its commercial customers. Company personnel

Riverside Florists uses an activity-based costing system to compute the cost of making floral bouquets and delivering the bouquets to its commercial customers. Company personnel who earn $300,000 typically perform both tasks; other firm-wide overhead is expected to total $50,000. These costs are allocated as follows:

Bouquet Production Delivery Other
Wages and salaries 70% 20% 10%
Other overhead 60% 20% 20%

Riverside anticipates making 30,000 bouquets and 3,000 deliveries in the upcoming year. rev: 10_29_2012

34.

Required information

The cost of wages and salaries and other overhead that would be charged to each bouquet made is closest to:

$8.00.

$11.67.

$9.60.

$12.92.

some other amount.

35.

Required information

The cost of wages and salaries and other overhead that would be charged to each delivery is closest to:

$30.45.

$23.33.

$44.33.

$24.01.

some other amount.

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