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

Multiple Choice

Tranquility Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan has 20 separate parts. The direct materials cost is $95 and each ceiling fan requires 2.50 hours of machine time to manufacture. There is no direct labor. Additional information is as follows: $$\begin{array} { | l | l | r | } \hline \text { Activity } & \text { Allocation Base } & \begin{array} { c } \text { Predetermined Overhead } \\\text { Allocation Rate }\end{array} \\\hline \text { Materials handling } & \text { Number of parts } & \$ 0.07 \\\hline \text { Machining } & \text { Machine hours } & 7.40 \\\hline \text { Assembling } & \text { Number of parts } & 0.40 \\\hline \text { Packaging } & \text { Number of finished units } & 2.50 \\\hline\end{array}$$ What is the total manufacturing cost per ceiling fan? (Round any intermediate calculations and your final answer to the nearest cent.)

A) $106.90
B) $114.90
C) $122.90
D) $125.40