Please explain

Sitwell Corporation manufactures titanium and aluminum tennis racquets. Sitwell's 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 $30,000

Inspections 350 150 $50,000

2,100 labor hours 1,900 labor hours

Sitwell is considering switching from one overhead rate based on labor hours to activity-based costing. Total overhead costs assigned to titanium racquets, using a single overhead rate, are

$50,000.

$42,000.

$56,000.

$40,000.