Skyline 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 $220,000 typically perform both tasks; other firm-wide overhead is expected to total $30,000. These costs are allocated as follows:

Bouquet ProductionDeliveryOtherWages and salaries50%40%10%Other overhead50%35%15%

Skyline anticipates making 26,000 bouquets and 4,000 deliveries in the upcoming year.

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

Multiple Choice

• $4.81.
• $6.41.
• $9.62.
• $10.87.
• None of the answers is correct.