Brannon Company Manufactures Ceiling Fans and Uses an Activity-Based Costing

question 34

Multiple Choice

Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 separate parts. The direct material cost is $95 and each ceiling fan requires 2.5 hours of machine time to manufacture. Additional information is as follows: $$\begin{array} { | l | l | c | } \hline { \text { Activity } } & { \text { Allocation Base } } & \text { Cost Allocation Rate \$ } \\\hline \text { Materials handling } & \text { Number of parts } & 0.08 \\\hline \text { Machining } & \text { Machine hours } & 7.20 \\\hline \text { Assembling } & \text { Number of parts } & 0.35 \\\hline \text { Packaging } & \text { Number of finished units } & 2.70 \\\hline\end{array}$$ What is the cost of materials handling per ceiling fan?

• A) $1.60
• B) $7.20
• C) $6.00
• D) $5.00

Acknowledge the difference between CSR initiatives and traditional corporate strategies.

Recognize the importance of tailored performance measurement systems for diverse corporate divisions.

Understand the definition and significance of corporate social responsibility (CSR) and how it is integrated into corporate operations.

Recognize the various initiatives and practices considered part of a company's CSR efforts.

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Definitions:

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) in a balance sheet is represented as a proportion of the total account.

Common Size Analysis

A financial analysis technique that expresses each line item on a financial statement as a percentage of a base amount for easy comparison across periods or companies.

Trend Analysis

The practice of collecting information and attempting to spot a pattern or trend in the data, often used in financial analysis.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.