Tranquility Company manufactures ceiling fans and uses an activity- based costing system. Each ceiling fan...
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Tranquility Company manufactures ceiling fans and uses an activity- based costing system. Each ceiling fan has 20 separate parts. The direct materials cost is $90 and each ceiling fan requires 3.5 hours of machine time to manufacture. There is no direct labor. Additional information is as follows: Predetermined Overhead Allocation Rate S 0.07 Activity Materials handling Machining Allocation Base Number of parts Machine hours Number of parts Number of finished units 0.35 2.1 Packaging What is the total manufacturing cost per ceiling fan? (Round any intermediate calculations and your final answer to the nearest cent.) A. $125.00 B. $115.90 Oc. $122.90 OD. $100.50
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