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Home Q & A Board Other Fields Homework Help Business Accounting
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Abadeer Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan has 20 separate parts. The direct materials cost is $70, and each ceiling fan requires 4.00 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     6.20
Assembling   Number of parts     0.30
Packaging   Number of finished units     3.30

What is the cost of assembling per ceiling fan? (Round any intermediate calculations and your final answer to the nearest cent.)
A) $21.00
B) $70.00
C) $6.00
D) $24.80
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
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7 years ago
This was certainly a tough question, loving the expertise
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