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How much assembly cost is assigned to deluxe racquets

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Question - R-Ball Corporation manufactures deluxe and standard racquetball racquets.

R-Ball's total overhead costs consist of assembly costs and inspection costs. The following information is available:

Cost Deluxe Standard Total Cost

Assembly 500 mach. hours 500 mach. hours $30,000

Inspections 350 150 $50,000

2,100 labor hours 1,900 labor hours

R-Ball 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 deluxe racquets?

A) $10,500.

B) $15,000.

C) $15,750.

D) $21,000.

Reference no: EM131806916

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