Lily 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 500 mach. hrs. 500 mach. hrs. $80000 Inspections 350 150 $118000 2100 labor hrs. 1900 labor hrs. Lily 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 O $99000. O $118000. $103950.

Lily 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 500 mach. hrs. 500 mach. hrs. $80000 Inspections 350 150 $118000 2100 labor hrs. 1900 labor hrs. Lily 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 O $99000. O $118000. $103950.

Name: Lily Corporation manufactures titanium and aluminum tennis racquets.
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Description: Lily Corporation manufactures titanium and aluminum tennis racquets. Reynoso's total overhead costs consist of assembly costs andinspection costs. The following information is available regarding activity cost pools, estimated use of activities per

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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: Cost Titanium Aluminum Total Cost Assembly 500 mach. hours 500 mach. hours $27000 Inspections 350 150 $80000 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? $24000. $40000. $56000. $29000.
Give the proper explanation.
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