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Blade Breeze Company Manufactures Ceiling Fans and Uses an Activity-Based

question 156

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Blade Breeze Company manufactures ceiling fans and uses an activity-based costing system.Each ceiling fan has 20 separate parts.The direct materials cost is $70,and each ceiling fan requires 2.50 hours of machine time to manufacture.Additional information is as follows:  Activity  Allocation Base  Predetermined Overhead  Allocation Rate  Materials handling  Number of parts $0.08 Machining  Machine hours 7.20 Assembling  Number of parts 0.35 Packaging  Number of finished units 2.80\begin{array} { | l | l | r | } \hline \text { Activity } & \text { Allocation Base } & \begin{array} { c } \text { Predetermined Overhead } \\\text { Allocation Rate }\end{array} \\\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 } & 2.80 \\\hline\end{array} What is the cost of machining per ceiling fan? (Round any intermediate calculations and your final answer to the nearest cent.)


Definitions:

Suburban Mall

A large retail complex located in a suburban area, typically anchored by major department stores and featuring a wide range of smaller retailers and food outlets.

Downtown Area

The central business district of a city, often characterized by a high concentration of retail stores, office buildings, and cultural amenities.

Major Amusement Park

A large-scale theme park offering a variety of rides, shows, and attractions designed to cater to both adults and children.

Department Store Branch

A subsidiary location of a major department store, often found in different cities or areas from the main store.

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