Question
Vaughn Corporation manufactures titanium and aluminum tennis racquets. Vaughn's total overhead costs consist of assembly costs and inspection costs. The following information is available regarding
Vaughn Corporation manufactures titanium and aluminum tennis racquets. Vaughn'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
500 mach. hrs.
350
2100 labor hrs.
Aluminum
500 mach. hrs.
150
1900 labor hrs.
Total Cost
$74000
$112000
Vaughn is considering switching from one overhead rate based on labor hours to activity-based costing.
If activity-based costing is used, what amount of assembly cost is assigned to titanium racquets?
O $19950.
O $37000.
O $51800.
O $38850.
i need the answerr asap!!!
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