Use the following information to answer the following Questions
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 $180,000 typically perform both tasks; other firm-wide overhead is expected to total $70,000. These costs are allocated as follows:

Skyline anticipates making 20,000 bouquets and 4,000 deliveries in the upcoming year.
-The cost of wages and salaries and other overhead that would be charged to each delivery is closest to:
A) $19.63.
B) $20.31.
C) $26.75.
D) $40.63.
E) None of the answers is correct.

Question

Use the following information to answer the following Questions
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 $180,000 typically perform both tasks; other firm-wide overhead is expected to total $70,000. These costs are allocated as follows:

Skyline anticipates making 20,000 bouquets and 4,000 deliveries in the upcoming year.
-The cost of wages and salaries and other overhead that would be charged to each delivery is closest to:
A) $19.63. 
B) $20.31. 
C) $26.75. 
D) $40.63. 
E) None of the answers is correct.

Quizplus · Accepted Answer

The cost of wages and salaries and other overhead that would be charged to each delivery is $19.63. This is calculated by dividing the total cost of wages and salaries and other overhead by the number of deliveries.

Use the Following Information to Answer the Following Questions