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. There are no direct labor costs. Additional information follows:
|
Activity |
Allocation Base |
Cost Allocation 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 total manufacturing cost per ceiling fan?