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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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