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Homework answers / question archive / Reynoso Corporation manufactures titanium and aluminum tennis racquets
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 | $49000 |
| Inspections | 350 | 150 | $102000 |
| 2100 labor hours | 1900 labor hours |
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?
$71400.
$30600.
$51550.
$51000.
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