Racquet King Corporation manufactures titanium and aluminum tennis racquets. Racquet King'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 $30,000 Inspections 350 150 $50,000 2,100 labor hours 1,900 labor hours Racquet King is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, how much inspection cost is assigned to titanium racquets? A) $15,000. B) $23,750. C) $25,000. D) $35,000.
Racquet King Corporation manufactures titanium and aluminum tennis racquets. Racquet King'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 $30,000 Inspections 350 150 $50,000 2,100 labor hours 1,900 labor hours Racquet King is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, how much inspection cost is assigned to titanium racquets? A) $15,000. B) $23,750. C) $25,000. D) $35,000.
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How much inspection cost is assigned to titanium racquets?

Transcribed Image Text:Racquet King Corporation manufactures titanium and aluminum tennis racquets. Racquet
King'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 $30,000
Inspections 350
150
$50,000
2,100 labor hours 1,900 labor hours
Racquet King is considering switching from one overhead rate based on labor hours to
activity-based costing. Using activity-based costing, how much inspection cost is assigned
to titanium racquets?
A) $15,000.
B) $23,750.
C) $25,000.
D) $35,000.
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