Wanda Florists Uses an Activity-Based Costing System to Compute the Cost

question 12

Multiple Choice

Wanda 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 $90,000 typically perform both tasks; other firm-wide overhead is expected to total $50,000. These costs are allocated as follows: $\begin{array}{llll}&\text { Bouquet}\\&\text { Production}&\text { Delivery}&\text { Other} \\\hline\text { Wages and }\\\text { Salaries } & 40 \% & 50 \% & 10 \% \\\text { Other overhead } & 60 \% & 25 \% & 15 \%\end{array}$ Wanda anticipates making 30,000 bouquets and 6,000 deliveries in the upcoming year. The cost of wages and salaries and other overhead that would be charged to each delivery is:

• A)$3.89.
• B)$7.50.
• C)$9.58.
• D)$14.00.
• E)$23.33.

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Definitions:

Tolman's Theory

Edward C. Tolman's theory of cognitive behaviorism, suggesting that learning involves the acquisition of knowledge rather than just responses to stimuli, emphasizing cognitive maps and latent learning.

Incentive Motivation

Motivation driven by the desire to gain external rewards or avoid negative outcomes.

Principal to Principal

A relationship or interaction that occurs directly between the main parties involved, without intermediaries.

Agent to Agent

Communication or interaction between autonomous entities in a network, typically in the context of software or business negotiations.