Question
Blade Breeze Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan has 20 separate parts. The direct materials cost is $75,
Blade Breeze 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 3.00 hours of machine time to manufacture. Additional information is as follows:
| Activity | Allocation Base | Predetermined Overhead Allocation Rate |
| Materials handling | Number of parts | $ 0.06 |
| Machining | Machine hours | 6.60 |
| Assembling | Number of parts | 0.35 |
| Packaging | Number of finished units | 3.60 |
What is the cost of machining per ceiling fan? (Round any intermediate calculations and your final answer to the nearest cent.)
| a | $19.80 |
| b | $132.00 |
| c | $270.00 |
| d | $75.00 |
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