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

question 126

Multiple Choice

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: $$\begin{array} { | l | l | r | } \hline \text { Activity } & \text { Allocation Base } & \begin{array} { c } \text { Predetermined Overhead } \\\text { Allocation Rate }\end{array} \\\hline \text { Materials handling } & \text { Number of parts } & \$ 0.08 \\\hline \text { Machining } & \text { Machine hours } & 7.20 \\\hline \text { Assembling } & \text { Number of parts } & 0.35 \\\hline \text { Packaging } & \text { Number of finished units } & 2.80 \\\hline\end{array}$$ What is the cost of machining per ceiling fan? (Round any intermediate calculations and your final answer to the nearest cent.)

• A) $18.00
• B) $70.00
• C) $144.00
• D) $196.00

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Definitions:

Situational Cues

External indicators in an environment that can influence an individual's thoughts, feelings, or behavior.

Hostile Feelings

Negative and aggressive emotions directed towards others, which can lead to antagonistic attitudes or behaviors.

Cultures of Honor

Social groups that place a high value on the integrity and reputation of their members, often responding aggressively to insults or threats.

Collectivist Cultures

Societies that prioritize the group over the individual, emphasizing interconnectedness, cooperation, and group goals.