What amount of inspections cost is assigned to titanium

Reference no: EM133415919

Question: 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 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. $60,000

Inspections 350 150 $100,000

2,100 labor hrs. 1,900 labor hrs.

Reynoso 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?

Reference no: EM133415919

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