HW_7_-_Part_B - 50% 35% 15% Riverside anticipates making...

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Activity-Based-Costing Comprehensive Exercises - HW 7 PART (B) Riverside 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
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Unformatted text preview: 50% 35% 15% Riverside anticipates making 20,000 bouquets and 4,000 deliveries in the upcoming year. 1 The cost of wages and salaries and other overhead that would be charged to each bouquet made is: a. $7.15. b. $8.75. c. $12.50. d. $13.75. e. some other amount. 2 The cost of wages and salaries and other overhead that would be charged to each delivery is: a. $19.63 b. $20.31 c. $26.75 d. $40.63 e. some other amount....
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