Blade Breeze Company manufactures ceiling fans and uses an activity-based costing system.Each ceiling fan has 20 separate parts.The direct materials cost is $75,and each ceiling fan requires 3.00 hours of machine time to manufacture.Additional information is as follows: $$\begin{array} { | l | l | l | }
\hline \text { Activity } & \text { Allocation Base } & \begin{array} { l }
\text { Predetermined Overhead } \
\text { Allocation Rate }
\end{array} \
\hline \text { Materials handling } & \text { Number of parts } & \$ 0.06 \
\hline \text { Machining } & \text { Machine hours } & 6.60 \
\hline \text { Assembling } & \text { Number of parts } & 0.35 \
\hline \text { Packaging } & \text { Number of finished units } & 3.60 \
\hline
\end{array}$$ What is the cost of machining per ceiling fan? (Round any intermediate calculations and your final answer to the nearest cent.)

Question

Blade Breeze Company manufactures ceiling fans and uses an activity-based costing system.Each ceiling fan has 20 separate parts.The direct materials cost is $75,and each ceiling fan requires 3.00 hours of machine time to manufacture.Additional information is as follows: $$\begin{array} { | l | l | l | } 
\hline \text { Activity } & \text { Allocation Base } & \begin{array} { l } 
\text { Predetermined Overhead } \
\text { Allocation Rate }
\end{array} \
\hline \text { Materials handling } & \text { Number of parts } & \$ 0.06 \
\hline \text { Machining } & \text { Machine hours } & 6.60 \
\hline \text { Assembling } & \text { Number of parts } & 0.35 \
\hline \text { Packaging } & \text { Number of finished units } & 3.60 \
\hline
\end{array}$$ What is the cost of machining per ceiling fan? (Round any intermediate calculations and your final answer to the nearest cent.)

Quizplus · Accepted Answer

The cost of machining per ceiling fan is $6.60 per machine hour * 3.00 hours = $19.80.

Blade Breeze Company Manufactures Ceiling Fans and Uses an Activity-Based