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 Titaniium Aluminum Total Cost

Assembly 500 mach. hours 500 mach. hours $60,000 Inspections 350 250 $100,000 2,100 labor hours 1,900 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

		$80,000.
		$84,000.
		$100,000
		$112,000.