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Schach [20]
3 years ago
15

Tranquility Company manufactures ceiling fans and uses an activityminusbased costing system. Each ceiling fan has 20 separate pa

rts. The direct materials cost is $ 85 and each ceiling fan requires 3 hours of machine time to manufacture. There is no direct labor. Additional information is as​ follows: Activity Allocation Base Predetermined Overhead Allocation Rate Materials handling Number of parts ​$ 0.04 Machining Machine hours 7.8 Assembling Number of parts 0.35 Packaging Number of finished units 3 What is the total manufacturing cost per ceiling​ fan? (Round any intermediate calculations and your final answer to the nearest​ cent.) A. $ 95.80 B. $ 116.20 C. $ 119.20 D. $ 109.20
Business
1 answer:
UkoKoshka [18]3 years ago
6 0

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Each ceiling fan has 20 separate parts.

The direct materials cost is $ 85

Each ceiling fan requires 3 hours of machine time to manufacture.

Activity (Allocation Base) -  Predetermined Overhead Allocation Rate

Materials handling (Number of parts) - ​$0.04

Machining (Machine hours) -  $7.8

Assembling (Number of parts) -  $0.35

Packaging (Number of finished units) - $3

Total unitary cost= direct material + allocated overhead

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Total unitary cost= 85 + (0.04*20 + 7.8*3 + 0.35*20 + 3*1)= $119.2

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Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% return fro
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Answer:

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Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calcuated using a financial calculator

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To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

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