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

question 163

Multiple Choice

Tranquility Company manufactures ceiling fans and uses an activity-based costing system.Each ceiling fan has 20 separate parts.The direct materials cost is $95 and each ceiling fan requires 2.50 hours of machine time to manufacture.There is no direct labor.Additional information is as follows: $$\begin{array} { | l | l | r | } \hline \text { Activity } & \text { Allocation Base } & \begin{array} { c } \text { Predetermined Overhead } \\\text { Allocation Rate }\end{array} \\\hline \text { Materials handling } & \text { Number of parts } & \$ 0.07 \\\hline \text { Machining } & \text { Machine hours } & 7.40 \\\hline \text { Assembling } & \text { Number of parts } & 0.40 \\\hline \text { Packaging } & \text { Number of finished units } & 2.50 \\\hline\end{array}$$ What is the total manufacturing cost per ceiling fan? (Round any intermediate calculations and your final answer to the nearest cent.)

• A)$106.90
• B)$114.90
• C)$122.90
• D)$125.40

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Definitions:

Cornea

The clear, dome-shaped surface that covers the front of the eye and contributes to the eye's focusing power.

Sclera

The tough protective outer layer of the eye, contributing to the eye's structural integrity and being crucial for vision.

Mechanoreceptor

A sensory receptor that responds to mechanical pressure or distortion, involved in senses like touch and hearing.

Thermoreceptor

A sensory receptor that is sensitive to changes in temperature, found in the skin and hypothalamus.