Abadeer Company manufactures ceiling fans and uses an activity-based costing sys

Question

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: Predetermined Overhead Allocation Rate Activity Materials handling Machining Assembling Packaging Allocation Base Number of parts Machine hours Number of parts Number of finished units $ 0.07 6.20 0.30 3.30 What is the cost of assembling per ceiling fan? (Round any intermediate calculations and your final answer to the nearest cent.) O A. $21.00 O B. $70.00 O C. $6.00 O D. $24.80

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* Only 'cost of assembly' is asked

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