Brannon Company Manufactures Ceiling Fans and Uses an Activity-Based Costing

Multiple Choice

Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 separate parts. The direct material cost is $95 and each ceiling fan requires 2.5 hours of machine time to manufacture. Additional information is as follows: What is the cost of assembling per ceiling fan?

A) $87.50
B) $7.00
C) $7.50
D) $35.00