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.)

Question

Aylin Moran

Business

4 October, 17:07

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.)

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Answers (1)

Know the Answer?

Rihanna Padilla · Answer 1

Answer: $109.6

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