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Brannon Company manufactures ceiling fans and uses an activityminus-based costing system. Each ceiling fan consists of 20 separate parts. The direct material cost is$95 and each ceiling fan requires 2.5 hours of machine time to manufacture. There is no direct labor cost. Additional information is asfollows:

Activity Allocation Base Predetermined Overhead Allocation Rate
Materials handling Number of parts $0.08
Machining Machine hours 7.20
Assembling Number of parts 0.35
Packaging Number of finished units 2.70

What is the total manufacturing cost per ceilingfan?

A. $125.75

B. $121.13

C. $124.30

D. $115.32

Accounting Basics, Accounting

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