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

question 51

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 assembling per ceiling fan?

• A) $87.50
• B) $7.00
• C) $7.50
• D) $35.00

---

Definitions:

Health-Promotion Program

Initiatives or activities designed to enhance well-being and prevent disease through lifestyle and behavioral changes.

Proper Hand Washing

The practice of thoroughly cleaning hands with soap and water to remove dirt, germs, and bacteria, crucial for preventing the spread of infections.

Information Dissemination

The use of a variety of media to educate the public and raise awareness about the risks of particular lifestyle choices and personal behaviours, as well as the benefits of changing those behaviours and improving the quality of life.

Spiritual Health Assessment

An evaluation of an individual's spiritual well-being and how it affects their overall health.