Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan has 20 separate parts. The direct material cost is $70, and each ceiling fan requires 4.00 hours of machine time to manufacture. Additional information is as follows:

Activity Allocation Base Predetermined Overhead Allocation Rate Materials handling Number of parts $ 0.08 Machining Machine hours 6.20 Assembling Number of parts 0.30 Packaging Number of finished units 2.30

A) $9.20 B) $2.30 C) $1.60 D) $6.20