Vivian's Flowers produces floral bouquets for commercial businesses (i.e. hotels) and uses an activity-based costing system....

 

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Vivian's Flowers produces floral bouquets for commercial businesses (i.e. hotels) and uses an activity-based costing system. Data concerning overhead costs and activity pools is as follows: Activity Cost Pool Bouquets Deliveries Other Total Estimated Wages $48,000 24,000 8,000 $80,000 $0.91 $0.80 Estimated Other $18,000 10,000 12,000 $40,000 During the year Vivian made 60,000 bouquets and made 5,000 deliveries. Using activity- based costing what is the approximate cost per bouquet? A. $2.00 B. $1.10 C. D. Vivian's Flowers produces floral bouquets for commercial businesses (i.e. hotels) and uses an activity-based costing system. Data concerning overhead costs and activity pools is as follows: Activity Cost Pool Bouquets Deliveries Other Total Estimated Wages $48,000 24,000 8,000 $80,000 $0.91 $0.80 Estimated Other $18,000 10,000 12,000 $40,000 During the year Vivian made 60,000 bouquets and made 5,000 deliveries. Using activity- based costing what is the approximate cost per bouquet? A. $2.00 B. $1.10 C. D.

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