Racquet King Corporation manufactures titanium and aluminum tennis racquets. Racquet King'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 Racquet King is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, how much assembly cost is assigned to titanium racquets? A) $10,500. B) $15,000. C) $15,750. D) $21,000. 5. Racquet King Corporation manufactures titanium and aluminum tennis racquets. Racquet King'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 Racquet King 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? A) $15,000. B) $23,750. C) $25,000. D) $35,000. 6. Minnie Moore Corporation has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 120,000 500 orders Machine Setup Setups 297,000 450 setups Machining Machine hours 1,500,000 125,000 MH Assembly Parts 1,200,000 1,000,000 parts Inspection Inspections 300,000 500 inspections If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is A) $9.60. B) $12.00. C) $15.00. D) $34.17. 7. Minnie Moore Corporation has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 120,000 500 orders Machine Setup Setups 297,000 450 setups Machining Machine hours 1,500,000 125,000 MH Assembly Parts 1,200,000 1,000,000 parts Inspection Inspections 300,000 500 inspections If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is A) $1.20 per direct labor hour. B) $240 per order. C) $0.12 per part. D) $6,834 per order. 8. An example of a cost which would not be assigned to an overhead cost pool is A) salaries. B) freight-out. C) depreciation. D) supplies. 9. One of Melman Company's activity cost pools is inspecting, with estimated overhead of $100,000. Melman produces throw rugs (700 inspections) and area rugs (1,300 inspections). How much of the inspecting cost pool should be assigned to throw rugs? A) $35,000. B) $50,000. C) $53,846. D) $100,000. 10. For its inspecting cost pool, Sosa Company expected overhead cost of $200,000 and 4,000 inspections. The actual overhead cost for that cost pool was $240,000 for 5,000 inspections. The activity-based overhead rate used to assign the costs of the inspecting cost pool to products is A) $40 per inspection. B) $48 per inspection. C) $50 per inspection. D) $60 per inspection