What total overhead costs assigned to titanium racquets

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Reference no: EM133002276

Lily 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                          500mach. hrs.          500mach. hrs.        $ 80000
Inspections                         350                          150                   $ 118000
                                      2100labor hrs .              1900labor hrs.

Problem 1: Lily is considering switching from one overhead rate based on labor hours to activity-based costing. Total overhead costs assigned to titanium racquets computed using a single overhead rate are

Option 1: $ 138600.
Option 2: $ 103950.
Option 3: $ 118000.
Option 4: $ 99000.

Reference no: EM133002276

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