Question

Jennings Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan has 30 separate parts. The direct materials cost is $105 and each ceiling fan requires 2.50 hours of machine time to manufacture. Additional information is as follows: Activity Allocation Base Predetermined Overhead Allocation Rate Materials handling Number of parts $ 0.04 Machining Machine hours 7.60 Assembling Number of parts 0.40 Packaging Number of finished units 3.90 What is the total manufacturing cost per ceiling fan? (Round any intermediate calculations and your final answer to the nearest cent.)

Answer 1

$141

Step-by-step explanation:

The computation of total manufacturing cost per ceiling fan is shown below:-

Total manufacturing cost = Direct materials + Materials handling + Machining + Assembling + Packaging

= $105 + ($0.04 × 30) + ($7.60 × 2.50) + (0.40 × 30) + $3.90

= $105 + $1.2 + $19 + $12 + $3.90

= $141

Therefore for computing the total manufacturing cost per ceiling fan we simply applied the above formula.