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Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynosos total overhead costs consist of assembly costs and inspection costs. The following information is available: Cost

Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynosos 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 $50000
Inspections 350 150 $90000
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 assembly cost is assigned to titanium racquets?

$21000.

$35000.

$25000.

$26250.

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