Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 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 materials handling per ceiling fan?
A)$1.60
B)$7.20
C)$6.00
D)$5.00

Question

Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 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 materials handling per ceiling fan?
A)$1.60 
B)$7.20 
C)$6.00 
D)$5.00

Quizplus · Accepted Answer

The Answer of Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 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 materials handling per ceiling fan?
A)$1.60 
B)$7.20 
C)$6.00 
D)$5.00

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