Brannon Company manufactures ceiling fans and uses an activity-based costing system to allocate all manufacturing overhead costs. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. The Cost Allocation Rates for activities are as follows: Material handling $ 0.08 per part; Machining $7.20 per machine hour; Assembling $0.35 per part; Packaging $2.70 per finished unit. What is the total manufacturing overhead cost per ceiling fan, not including the direct materials? (rounded)

a. All listed choices are incorrect.

b. $10.33

c. $124.30

d. $29.30

The monthly cost of heating our company office is a fixed cost, a CEO says, because we adjust the thermostat according to the weather conditions which are beyond our control. Do you agree? (Yes/No) And is this a variable cost?

Select one:

a. Yes, I agree, and this is not a variable cost.

b. Yes, I agree, and this is a variable cost.

c. No, I dont agree, because this is a variable cost.

d. No, I dont agree, because this is a mixed cost.