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Question 1. Question 2. Windsor Co. incurs $ 1032500 of overhead costs each year in its three main departments, machining ($ 590000), inspections ($ 295000)
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Windsor Co. incurs $ 1032500 of overhead costs each year in its three main departments, machining ($ 590000), inspections ($ 295000) and packing ($ 147500). The machining department works 4000 hours per year, there are 500 inspections per year, and the packing department packs 1000 orders per year. Information about Windsor's two products is as follows: Product X Product Y Machining hours 1000 3000 Inspections 100 400 Orders packed 350 650 1700 1800 Direct labor hours Using ABC, how much overhead is assigned to Product X this year? O $ 516250 O $ 501500 O $361375 O $258125 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 $ 25000 Inspections 350 150 $ 82000 2100 labor hours 1900 labor hours Reynoso is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, how much inspections cost is assigned to titanium racquets? $ 27050. O $ 24600. O $ 41000. O $ 57400Step by Step Solution
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