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

question 103

Multiple Choice

Abadeer 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 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 assembling per ceiling fan? (Round any intermediate calculations and your final answer to the nearest cent. )

• A)$70.00
• B)$6.00
• C)$24.80
• D)$21.00

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