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What is the total manufacturing cost per ceiling fan

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Reference no: EM13558714

Brannon Company manufactures ceiling fans and uses an activity-based costing system.

Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. There are no direct labor costs. Additional information follows:

Activity

Allocation Base

Cost Allocation Rate

Materials handling

Number of parts

$ .08

Machining

Machine hours

$7.20

Assembling

Number of parts

$.35

Packaging

Number of finished units

$2.70

What is the total manufacturing cost per ceiling fan?

Reference no: EM13558714

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