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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 regarding
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 regarding activity cost pools, estimated use of activities per product, and total estimated overhead costs:tableTitanium,Aluminum,Total CostAssembly ?mach. hrs ?mach. hrs$
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 regarding activity cost pools, estimated use of activities per product, and total estimated overhead costs: Activity Cost Pools Assembly Inspections Titanium Aluminum Total Cost 500 mach. hrs. 500 mach. hrs. $60,000 350 150 2,100 labor 1,900 labor $100,000 hrs. hrs. Reynoso is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, what amount of inspections cost is assigned to titanium racquets?
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