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Room Chill Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan has 20 seperate parts. The direct materials cost is $85.00
Room Chill Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan has 20 seperate parts. The direct materials cost is $85.00 and each ceiling fan requires 2 hours of machine time to manufacture. Question: What is the cost of assembling per ceiling fan? (Round it to the nearest cent) Answer: $6.00 ********Please show the work for this answer******** Additional information is as follows: Activity Allocation Base Predetermined ___________________________________________overhead ___________________________________________allocation rate Material handling # of parts $0.08 Machining machine hours. 7 Assembling. # of parts. 0.3 Packaging. # of finished units. 2.9
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