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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:
Cost Titanium Aluminum Total Cost
Assembly 500 mach. Hours 500 mach. hours $46000
Inspections 350 150 $86000 2100 labor hours 1900 labor hours
Reynoso is considering switching from one overhead rate based on labor hours to activity-based costing.
Required - What the Total overhead costs assigned to titanium racquets, using a single overhead rate?
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