BUSINESS COLLEGE

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:Bouquet Production Delivery Other
Wages and salaries 60% 30% 10%
Other overhead 50% 35% 15%


Riverside 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 closest to:

a. $12.50.
b. $7.15.
c. some other amount.
d. $8.75.
e. $13.75.

Answers

Answer 1
Answer:

Answer:

b. $7.15

Explanation:

Cost of wages & salaries per bouquet = [($180,000*60%) + ($70,000*50%)] / 20,000

Cost of wages & salaries per bouquet = ($108,000 + $35,000) / 20,000

Cost of wages & salaries per bouquet = $143,000 / 20,000

Cost of wages & salaries per bouquet = $7.15

So, the cost of wages and salaries and other overhead that would be charged to each bouquet made will be $7.15.
Answer 2
Answer:

Final answer:

The cost of wages and salaries charged to each bouquet is approximately $7.15.

Option (b) is true.

Explanation:

To find the cost of wages and salaries and other overhead allocated to each bouquet made, we can use the information provided for the allocation percentages for bouquet production.

Wages and Salaries allocated to bouquet production = 60%

Other overhead allocated to bouquet production = 50%

Now, let's calculate the costallocated to each bouquet:

Wages and Salaries for Bouquet Production:

Wages and Salaries = 60% of $180,000 (company personnel)

Wages and Salaries for Bouquet Production = 0.60 * $180,000 = $108,000

Other Overhead for Bouquet Production:

Other Overhead = 50% of $70,000 (other firm-wide overhead)

Other Overhead for Bouquet Production = 0.50 * $70,000 = $35,000

Now, add these two costs together to get the total cost allocated to bouquet production:

Total Cost Allocated to Bouquet Production = Wages and Salaries for Bouquet Production + Other Overhead for Bouquet Production

= $108,000 + $35,000

= $143,000

Now, we need to find the cost per bouquet. Given that Riverside anticipates making 20,000 bouquets in the upcoming year, divide the total cost allocated to bouquet production by the number of bouquets:

Cost per Bouquet = Total Cost Allocated to Bouquet Production / Number of Bouquets

Cost per Bouquet = $143,000 / 20,000 bouquets

Now, calculate the cost per bouquet:

Cost per Bouquet = $7.15

So, the cost of wages and salaries and other overhead allocated to each bouquet made is closest to $7.15.

The answer is (b) $7.15.

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Answers

Answer:

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Explanation:

Giving the following information:

Next Generation's predetermined overhead rate is $16 per direct labor-hour and its direct labor wage rate is $11 per hour. Job1987 used $1,202 of direct materials and $5,500 of direct labor.

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Answers

Answer:

Please see attachment

Explanation:

Please see attachment

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Answers

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Answer:

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Answers

Answer:

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Explanation:

Given that,

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