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What is the cost of assembling per ceiling fan

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Reference no: EM132571991

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.

Problem 1: What is the cost of assembling per ceiling fan? (Round it to the nearest cent)

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

Reference no: EM132571991

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