Foster 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$82,000?Other expenses 74,000?Total$156,000?Distribution of resource consumption:Activity Cost Pools Making BouquetsDeliveryOtherTotalWages and salaries45%40%15%100%Other expenses35%55%10%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 Cost PoolActivityMaking bouquets73,020?bouquetsDelivery16,800?deliveriesWhat 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.)
A. $4.38
B. $3.95
C. $2.67
D. $5.24
Answer: A
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Fill in the blanks with correct word