Fogle 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:

Fogle 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	$128,000
Other expenses	64,000
Total	$192,000

Distribution of resource consumption:
	Activity Cost Pools
	Making Bouquets	Delivery	Other	Total
Wages and salaries	60%	30%	10%	100%
Other expenses	45%	50%	5%	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 Pool	Activity
Making bouquets	57,390 bouquets
Delivery	12,500 deliveries

What 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?

	$6.49
	$5.20
	$3.92
	$5.63

Allocations to the Delivery activity cost pool:

Wages and salaries (30% × $128,000)	$38,400
Other expenses (50% × $64,000)	32,000
Total cost	$70,400

Overhead cost per delivery = Total cost ÷ Number of deliveries

= $70,400 ÷ 12,500 deliveries

= $5.63 per delivery