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22 November, 18:02

Room Chill Company manufactures ceiling fans and uses an activityminusbased costing system. Each ceiling fan has 20 separate parts. The direct materials cost is $ 85.00 , and each ceiling fan requires 2 hours of machine time to manufacture. Additional information is as follows: Activity Allocation Base Predetermined Overhead Allocation Rate Materials handling Number of parts $ 0.07 Machining Machine hours 6.6 Assembling Number of parts 0.3 Packaging Number of finished units 4 What is the cost of assembling per ceiling fan? (Round any intermediate calculations and your final answer to the nearest cent.)

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  1. 22 November, 20:39
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    Answer: $109.6

    Explanation:

    Given that,

    Each ceiling fan has = 20 separate parts

    Direct materials cost = $85.00

    Total manufacturing cost:

    = Direct materials + Materials handling + Machining + Assembling + Packaging

    = $85 + ($0.07 * 20) + ($6.6 * 2) + (0.3 * 20) + $4

    = $85 + $1.4 + $13.2 + $6.00 + $4

    = $109.6

    Total manufacturing cost per ceiling fan = $109.6
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