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 bouquet made is:
A) $7.15.
B) $8.75.
C) $12.50.
D) $13.75.
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 bouquet made is:
A) $7.15. 
B) $8.75. 
C) $12.50. 
D) $13.75. 
E) None of the answers is correct.

Quizplus · Accepted Answer

The cost of wages and salaries is $5.00 per bouquet. The cost of other overhead is $2.15 per bouquet. The total cost of wages and salaries and other overhead is $7.15 per bouquet.

Use the Following Information to Answer the Following Questions