*Please show me how to solve this problem step by step!*

1. In traditional costing systems, overhead is generally applied based on

Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso'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 $76000

Inspections 350 150 $114000

2100 labor hours 1900 labor hours

Reynoso 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

$95000.

$99750.

$133000.

$114000.