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

question 53

Multiple Choice

Tranquility Company manufactures ceiling fans and uses an activity-based costing system.Each ceiling fan has 20 separate parts.The direct materials cost is $75 and each ceiling fan requires 2.00 hours of machine time to manufacture.There is no direct labor.Additional information is as follows: $$\begin{array} { | l | l | l | } \hline \text { Activity } & \text { Allocation Base } & \begin{array} { l } \text { Predetermined Overhead } \\\text { Allocation Rate }\end{array} \\\hline \text { Materials handling } & \text { Number of parts } & \$ 0.06 \\\hline \text { Machining } & \text { Machine hours } & 6.00 \\\hline \text { Assembling } & \text { Number of parts } & 0.35 \\\hline \text { Packaging } & \text { Number of finished units } & 3.40 \\\hline\end{array}$$ What is the total manufacturing cost per ceiling fan? (Round any intermediate calculations and your final answer to the nearest cent.)

• A) $86.60
• B) $88.20
• C) $95.20
• D) $98.60

---

Definitions:

Directly Elected

A form of election where voters directly choose the person or political party they want in office, without the intervention of an electoral college or other bodies.

Constitution

The fundamental law of a nation or state, outlining the principles and framework of its government, the rights and duties of its citizens, and the distribution of powers and responsibilities among its branches.