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	$175,000
Other expenses	137,000
Total	$312,000

Distribution of resource consumption:
	Activity Cost Pools
	Making Bouquets	Delivery	Other	Total
Wages and salaries	50%	35%	15%	100%
Other expenses	20%	70%	10%	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	82,660 bouquets
Delivery	16,100 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?

	$9.33
	$9.76
	$8.05
	$10.62

Allocations to the Delivery activity cost pool:

Wages and salaries (35% × $175,000)	$61,250
Other expenses (70% × $137,000)	95,900
Total cost	$157,150

Overhead cost per delivery = Total cost ÷ Number of deliveries

= $157,150 ÷ 16,100 deliveries

= $9.76 per delivery