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Whirlwind Fan Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan has 20 separate parts. The direct material cost is $75.00,
Whirlwind Fan Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan has 20 separate parts. The direct material cost is $75.00, and each ceiling fan requires 3 5 hours of machine time to manufacture. Additional information is as follows: Predetermined Overhead Activity Allocation Base Allocation Rate Materials handling Number of parts $0.06 Machining Machine hours 8 Assembling Number of parts 0.4 Packaging Number of finished units 4 What is the cost of materials handling per ceiling fan? (Round any intermediate calculations and your final answer to two decimal places.) O A. $8.00 B. $1.20 OC. $4.00 OD. $14.00 Devon Company has collected the following data for one of its products: Direct materials standard (3 pounds @ $1/lb.) Direct materials flexible budget variance-unfavorable Actual direct materials used Actual units produced $3 per unit $14,500 103,000 pounds 22,000 units What is the direct materials efficiency variance? O A. $22,000 F B. $22,000 U O C. $37,000 U O D. $37,000 F
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