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James Corporation manufactures titanium and aluminum tennis rackets. James total overhead costs consist of assembly costs and inspection costs. The following information is available: Cost
James Corporation manufactures titanium and aluminum tennis rackets. James total overhead costs consist of assembly costs and inspection costs. The following information is available:
Cost | Titanium | Aluminum | Total Cost |
Assembly | 500 mach. hours | 500 mach. hours | $60,000 |
Inspections | 350 | 150 | $100,000 |
Total Labor Hours | 2,600 labor hours | 1,400 labor hours |
James is considering switching from one overhead rate based on labor hours to activity-based costing. What are the total overhead costs assigned to titanium racquets, using a single overhead rate?
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