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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: Cost
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: Cost Assembly Inspections Total Cost $48000 Titanium Aluminum 500 mach. hours 500 mach. hours 350 150 2100 labor hours 1900 labor hours $88000 Reynoso is considering switching from one overhead rate based on labor hours to activity based costing. Total overhead costs assigned to titanlum racquets, using a single overhead rate, are $95200 O $71400 $68000 $88000
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