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Q6. Brannon Company manufactures ceiling fans and uses an activity-based costing system to allocate all manufacturing conversion costs. Each ceiling fan consists of 20 separate
Q6. Brannon Company manufactures ceiling fans and uses an activity-based costing system to allocate all manufacturing conversion costs. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information follows: Activity Allocation Base Cost Allocation Rate | Materials handling Number of parts $.08 per part Machining Machine hours 7.20 per machine hour | Assembling Number of parts .35 per part Packaging Number of finished units finished unit What is the total manufacturing cost per ceiling fan? A. $125.75 B. $124.30 C. $121.13 D. $115.32 E. None of these
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