CW- CH.4Activity Based Costing 1. Reynoso Corporation manufact inum tennis racquets. Reynoso's total overhead costs consist o assembly cost nspection costs The following information is available Assembly Inspections y 400 mach. hours S60,000 $100,000 600 mach. hours 350 150 2.100 labor hours 1,900 labor hours Reynoso is considering switching from one overhead rate based on labor hoursto activity-based 1. Using a single overhead rate, what are total overhead costs assigned to titanium racquets? 2. Using activity-based costing, how much assembly cost is assigned to titanium racquets? 3. Using activity-based costing, how much inspections cost is assigned to titanium racquets? 2. Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year Cost Driver Orders Sctups Machine hours Parts Inspections Est.OverhcadCost Driver Activity Ordering and Receiving Machine Setup Machining Assembly Inspection S 120,000 297,000 1,500,000 1.200,000 300,000 500 orders 450 setups 125,000 MHH 1,000,000 parts 500 inspections Setupse hours 1.200 1. If overhead is applied using traditional costing based on direct labor hours, what is the overhead application rate? 2. If overhead is applied using activity-based costing, what is the overhead application rate for ordering and receiving? 3. Estimated costs for activity cost pools and other item(s) are as follows: Machining Assembling Advertising Inspecting and testing $500,000 200,000 450,000 175,000 What is total estimated overhead? 4. One of Matheny Company's activity cost pools s inspecting, with estimated overhead of S200 000, Matheny produces throw rugs (700 inspections) and area rugs (1,300 inspections). How much of the inspecting cost pool should be assigned to throw rugs? 5. For its inspecting cost pool, Ellsworth, Inc. expected overhead cost of $400,000 and 4,000 inspections The actual overhead cost for that cost pool was $480,000 for 5,000 inspections. What is the activity- based overhead rate used to assign the costs of the inspecting cost pool to products