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.
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 cost of machining per ceiling fan?
A) $18.00 B) $30.00 C) $180.00 D) $144.00
A
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