Question

2 Foster Florist specializes in large floral bouquets for hotels and other commercial spaces. The company has provided the fo
The Other activity cost pool consists of the costs of idle capacity and organization-sustaining costs. The amount of activit
Multiple Choice 36:51 O $5.40 ok ences $5.83 $4.12 $6.69
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Answer #1

Total wages and salaries = $ 178,000.

Distributed to delivery = 178,000 x 20%

Distributed to delivery = $ 35,600.

Total other expenses = $ 51,000.

Distributed to delivery = 51,000 x 65%

Distributed to delivery = $ 33,150.

Total cost to delivery = 35,600 + 33,150

Total cost to delivery = $ 68,750.

Total activity of delivery = 11,800 deliveries.

Cost per delivery = 68,750/11,800

Cost per delivery = $ 5.83

Hence, option B is the correct answer.

SUMMARY:

Cost per delivery = $ 5.83

Hence, option B is the correct answer.

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