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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Definitions:

Suspensory Ligament

Band of peritoneum that extends from the ovary to the body wall; contains the ovarian vessels and nerves. Small ligament attached to the margin of the lens in the eye and the ciliary body to hold the lens in place.

Mesovarium

Short peritoneal fold connecting the ovary with the broad ligament of the uterus.

Ovarian Ligament

Bundle of fibers passing to the uterus from the ovary.

Primary Follicle

An early stage in the development of ovarian follicles, consisting of an oocyte surrounded by a single layer of granulosa cells.