Question

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.)

Answer 1

Answer: $109.6

Step-by-step 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