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Fogle Florist specializes in large floral bouquets for hotels and other commercial spaces....

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Accounting

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Fogle Florist specializes in large floral bouquets for hotels and other commercial spaces. The company has provided the following data concerning its annual overhead costs and its activity based costing system Overhead costs Wages and salaries Other expenses Total $80,000 40,000 $120,000 Distribution of resource consumption Activity Cost Pools Making Total Wages and salaries Other expenses Bouquets| Delivery 35% 20% 55% 50% Other 10% 30% 100% 100% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. The amount of activity for the year is as follows Activity Activity Cost Pool Making bouquets Delivery 40,000 bouquets 7,000 deliveries What would be the total overhead cost per delivery according to the activity based costing system? In other words, what would be the overall activity rate for the deliveries activity cost pool? (Round to the nearest whole cent.)

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