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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:

Overvalued

Overvalued describes a situation where the market price of an asset is higher than its intrinsic value, often due to speculation or overestimation of its financial performance.

Par Value

A nominal value assigned to shares of stock by the issuing company, which has little relation to its market value.

Undervalued

A financial assessment that concludes an asset or a company's market price is lower than its intrinsic value.

Overvalued

Refers to a situation where the price of an asset exceeds its intrinsic value, often due to speculative demand.

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