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

question 10

Multiple Choice

Reichert 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 3.00 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 machining per ceiling fan? (Round any intermediate calculations and your final answer to the nearest cent. )

• A)$18.00
• B)$95.00
• C)$120.00
• D)$199.50

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Definitions:

Emancipation Proclamation

A presidential executive order issued by Abraham Lincoln in 1863 declaring the freedom of all slaves in Confederate territory during the American Civil War.

Confederate States

The Confederate States refer to the eleven southern states that seceded from the United States from 1860-1861, leading to the American Civil War.

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The foundational legal principles or grounds upon which laws, regulations, and judicial decisions are built.

54th Massachusetts

An all-black regiment in the Union Army during the American Civil War, known for its bravery and made famous by its assault on Fort Wagner.