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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Reynoso Corporation manufactures titanium and aluminum tennis racquets

Accounting Sep 28, 2020

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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