Question
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: Reynoso
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: 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?
Cost Titanium Aluminum Total Cost
Assembly. 500 mach hours. 500 mach hours. $60,000
Inspections. 350. 150. $100,000
2,100 labor hours. 1,900 labor hours.
a. $21,000
b. $30,000
c. $31,500
d. $42,000
How do I solve this?
Thank you
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