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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