Brannon Company manufactures ceiling fans and uses an activity-based costing system.Each ceiling fan consists of twenty separate parts.The direct material cost is $95 and each ceiling fan requires 2.5 hours of machine time to manufacture.Additional information is as follows:
- What is the cost of machining per ceiling fan?
A)$18
B)$180
C)$30
D)$144

Question

Brannon Company manufactures ceiling fans and uses an activity-based costing system.Each ceiling fan consists of twenty separate parts.The direct material cost is $95 and each ceiling fan requires 2.5 hours of machine time to manufacture.Additional information is as follows: 
- What is the cost of machining per ceiling fan?
A)$18 
B)$180 
C)$30 
D)$144

Quizplus · Accepted Answer

The cost of machining per ceiling fan is $18.

Brannon Company Manufactures Ceiling Fans and Uses an Activity-Based Costing