Brannon Company manufactures ceiling fans and uses the activity-based costing system. Each ceiling fan consists of 20 separate parts totaling $95 in…

Brannon Company manufactures ceiling fans and uses the activity-based costing system. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information:ActivityAllocation BaseCost Allocation RateMaterials handlingNumber of parts$.08MachiningMachine hours$7.20AssemblingNumber of parts$.35PackagingNumber of finished units$2.70a. What is the cost of materials handling per ceiling fan?b. What is the cost of machining per ceiling fan?c. Compare and contrast the ABC costing to more traditional costing methods. What are the main benefits of ABC?3. Explain, in your own words, what “Management by Exception” is and how it is used. (detailed info located in chapter lecture notes)4. Explain how management uses “performance variances” to help run a profitable company.

Brannon Company manufactures ceiling fans and uses the activity­based costing system. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of…

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