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

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 Answer of 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.

Skyline Florists Uses an Activity-Based Costing System to Compute the Cost