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 44000 Inspections 350 150 84000     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 assembly cost is assigned to titanium racquets?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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

44000

Inspections

350

150

84000

 

 

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 assembly cost is assigned to titanium racquets?

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