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?