Question Help Brannon Company manufactures ceiling fans and uses an activity- ba

Question

Question Help Brannon Company manufactures ceiling fans and uses an activity- based costing system. Each ceiling fan consists of 20 separate parts. The material cost is $95 and each ceiling fan requires 3.5 hours of machine time to manufacture. Additional information is as follows: Allocation Base Number of parts Machine hours Number of parts Number of finished units Predetermined Overhead Allocation Rate $0.06 7.2 0.55 1.7 Activity Materials handling Machining Assembling Packaging What is the cost of materials handing per celling fan? O A. $11.00 B. $1.20 O c. $7.20 OD. $34.00

Explanation / Answer

B $1.20 Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount No of separate parts per fan                           20.00 Material handling cost per separate part                             0.06 Cost of material handling per ceiling fan                             1.20

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