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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 $ 74000 Inspections 350 150 $ 112000 2100 labor hours 1900 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 $ 130200. $ 93000. $ 97650. $ 112000. eTextbook and Media 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 $ 85000 500 orders Ordering and Receiving Machine Setup Setups 265500 450 setups Machining Machine hours 1412500 125000 MH Assembly Parts 1130000 1000000 parts Inspection Inspections 265000 500 inspections If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is $0.85 per direct labor hour. $0.09 per part. $6316 per order. $170 per order
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