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

question 14

Multiple Choice

Brannon Company manufactures ceiling fans and uses an activity-based costing system.Each ceiling fan has 20 separate parts.The direct material cost is $70,and each ceiling fan requires 4.00 hours of machine time to manufacture.Additional information is as follows: $\begin{array}{|l|c|c|} \hline&&\text { Predetermined Overhead } \\\text { Activity } & \text { Allocation Base } & \text { Allocation Rate }\\ \hline \text { Materials handling } & \text { Number of parts } & \$ 0.08 \\\hline \text { Machining } & \text { Machine hours } &6.20 \\\hline \text { Assembling } & \text { Number of parts } &0.30 \\\hline \text { Sackaging } & \text { Number of finished units } &2.30 \\\hline\end{array}$ What is the cost of materials handling per ceiling fan? (Round any intermediate calculations and your final answer to two decimal places. )

• A)$1.60
• B)$6.20
• C)$2.30
• D)$9.20

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Definitions:

Stethoscope

A medical instrument used to listen to the sounds made by the heart, lungs, and other organs in the body.

Triglyceride

A type of fat (lipid) found in your blood, originating from foods or produced by the body, used for energy or stored as fat.

Venipuncture

The process of puncturing a vein with a needle to withdraw blood or administer medication.

Aneurysm

An abnormal bulge or ballooning in the wall of a blood vessel, which can be life-threatening if it ruptures.