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Waterway Corporation manufactures titanium and aluminum tennis racquets. Reynoso's total overhead costs consist of assembly costs and inspection costs. The following information is available

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Waterway 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 Titanium Aluminum Total Cost Assembly Inspections 500 mach. hrs. 350 500 mach. hrs. $64000 150 $102000 2100 labor hrs. 1900 labor hrs. Waterway is considering switching from one overhead rate based on labor hours to activity-based costing. Total overhead costs assigned to titanium racquets computed using a single overhead rate are $87150. $102000. O $116200. O $83000.

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