A floral company specializes in large floral bouquets for ho…
A floral company 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$70,000 Other expenses50,000 Total$120,000 Distribution of resource consumption: Activity Cost PoolsMaking Bouquets Delivery Other TotalWages and salaries70%20%10%100%Other expenses45%25%30%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 PoolActivity Making bouquets40,000 bouquets Delivery1,000 deliveries What is the activity rate for the making bouquets activity cost pool?Note: Round to the nearest whole cent.