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What amount of inspections cost is assigned to titanium

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Reference no: EM133003046

Bramble Corporation manufactures titanium and aluminum tennis racquets. Bramble'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                       500mach. hrs              500mach. hrs      $ 65000Inspections
Inspection                        350                              150                 $ 120000  

                                      2100labor hrs.                                     1900labor hrs.

Problem 1: Bramble is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, what amount of inspections cost is assigned to titanium racquets?

Option 1: $ 60000.

Option 2: $ 68500.

Option 3: $ 84000.

Option 4: $ 110000.

Reference no: EM133003046

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