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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 Titanium Aluminum Total Cost Assembly 500 mach. hours 500 mach. hours $61000 Inspections 350 150 $114000 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 inspections cost is assigned to titanium racquets? $79800. $63850. $34200. $57000. Save for Later Attempts: 0 of 1 used Submit Answer Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. Cost Driver Cost Driver Activity Activity Cost Pool Est. Overhead Orders $ 80000 500 orders Ordering and Receiving Machine Setup Setups 261000 450 setups Machining Machine hours 1400000 125000 MH Assembly Parts 1120000 1000000 parts Inspection Inspections 260000 500 inspections If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is $8.70. $31.21. $14.00. $11.20. Save for Later Attempts: 0 of 1 used Submit Answer Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Orders $ 140000 500 orders Ordering and Receiving Machine Setup Setups 315000 450 setups Machining Machine hours 1562500 125000 MH Assembly Parts 1240000 1000000 parts Inspection Inspections 320000 500 inspections If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is $1.40 per direct labor hour. $0.14 per part. $7155 per order. $280 per order
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