Question
[Ch4] 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
[Ch4] 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)
Select one:
a. $124.30
b. $10.33
c. $29.30
d. All listed choices are incorrect.
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