Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information follows: Cost Pool Allocation Base Overhead Rate Materials handling Number of parts $.08 Machining Machine hours $7.20 Assembling Number of parts $.35 Packaging Number of finished units $2.70 What is the cost of machining per ceiling fan? Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information follows: Cost Pool Allocation Base Overhead Rate Materials handling Number of parts $.08 Machining Machine hours $7.20 Assembling Number of parts $.35 Packaging Number of finished units $2.70 What is the cost of machining per ceiling fan? $144.00 $18.00 $180.00 $30.00

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan
consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to
produce. Additional information follows: Cost Pool Allocation Base Overhead Rate Materials handling
Number of parts $.08 Machining Machine hours $7.20 Assembling Number of parts $.35 Packaging
Number of finished units $2.70 What is the cost of machining per ceiling fan? Brannon Company
manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20
separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce.
Additional information follows: Cost Pool Allocation Base Overhead Rate Materials handling Number of
parts $.08 Machining Machine hours $7.20 Assembling Number of parts $.35 Packaging Number of
finished units $2.70 What is the cost of machining per ceiling fan? $144.00 $18.00 $180.00 $30.00
Transcribed Image Text:Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information follows: Cost Pool Allocation Base Overhead Rate Materials handling Number of parts $.08 Machining Machine hours $7.20 Assembling Number of parts $.35 Packaging Number of finished units $2.70 What is the cost of machining per ceiling fan? Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information follows: Cost Pool Allocation Base Overhead Rate Materials handling Number of parts $.08 Machining Machine hours $7.20 Assembling Number of parts $.35 Packaging Number of finished units $2.70 What is the cost of machining per ceiling fan? $144.00 $18.00 $180.00 $30.00
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