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

question 121

Multiple Choice

Brannon Company manufactures ceiling fans and uses an activity-based costing system.Each ceiling fan has twenty 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:
-What is the cost of materials handling per ceiling fan?

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

---

Definitions:

Intermediate Future

Intermediate future refers to a medium-term time horizon that individuals or organizations plan for, typically ranging from the next few months to several years ahead, balancing between short-term actions and long-term strategies.

Distant Future

A time well beyond the present, often associated with long-term projections or speculations.

Source of Satisfaction

The origin or cause of contentment and fulfillment for an individual or group.

Good Delegation

The effective process of assigning responsibility and authority to others while maintaining accountability for outcomes.