Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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: Total

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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: Total Cost $37000 Cost Titanium Aluminum Assembly 500 mach. hours 500 mach. hours Inspections 350 150 2100 labor hours 1900 labor hours $92000 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? $46000 $64400 $39300. $27600. Your answer is incorrect To assign overhead costs to each product, the company assigns the cost of each activity cost pool in total to one product line. Omultiplies the overhead rate by the number of direct labor hours used on each product. multiplies the activity-based overhead rates per cost driver by the number of cost drivers expected to be used per product. Omultiplies the rate of cost drivers per estimated cost for the cost pool by the estimated cost for each cost pool. eTextbook and Media Attempts: 1 of 2 used Submit Answer Save for Later Last saved 2 days ago Activities Cost Drivers Total Cost 1. Materials handling Number of requisitions $38,850 2. Machine setups Number of setups 26,190 3. Quality inspections Number of inspections 23,520 $88,560 The cost driver volume for each product was as follows. Cost Drivers Instruments Gauges Total Number of requisitions 420 630 1,050 Number of setups 225 260 485 Number of inspections 265 225 490 Assign the manufacturing overhead costs for April to the two products using activity-based costing (Round per unit answers to 2 decimal places. e.s. 12.25.). Instruments Gauges Total cost assigned 40410 $ 48150 Overhead cost per Unit 824,69 $ 162

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions