Room Chill Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan has 20 separate parts. The direct materials cost is $75.00, and each ceiling fan requires 2 hours of machine time to manufacture. Additional information is as follows: Activity Materials handling Machining Assembling Packaging Allocation Base Number of parts Machine hours Number of parts Number of finished units Predetermined Overhead Allocation Rate $0.06 6.2 0.25 2.1

Principles of Accounting Volume 2
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ISBN:9781947172609
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Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 9EB: Frenchys makes two types of scarves: polyester (poly) and silk. There are two cost pools: setup,...
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Room Chill Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan has 20
separate parts. The direct materials cost is $75.00, and each ceiling fan requires 2 hours of machine time to
manufacture. Additional information is as follows:
Activity
Allocation Base
Number of parts
F21
Machine hours
Number of parts
Number of finished units
Materials handling
Machining
Assembling
Packaging
OA.
$18.75
OB. $75.00
E
D. $12.40
Predetermined
OC. $5.00
Overhead
Allocation Rate
$0.06
6.2
What is the cost of assembling per ceiling fan? (Round any intermediate calculations and your final answer to the
nearest cent.)
0.25
2.1
Transcribed Image Text:Room Chill Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan has 20 separate parts. The direct materials cost is $75.00, and each ceiling fan requires 2 hours of machine time to manufacture. Additional information is as follows: Activity Allocation Base Number of parts F21 Machine hours Number of parts Number of finished units Materials handling Machining Assembling Packaging OA. $18.75 OB. $75.00 E D. $12.40 Predetermined OC. $5.00 Overhead Allocation Rate $0.06 6.2 What is the cost of assembling per ceiling fan? (Round any intermediate calculations and your final answer to the nearest cent.) 0.25 2.1
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