Question

what is the total overhead cost assigned to titanium racquets, using a single overhead rate is?

Current Attempt in Progress 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 Assembly 500 mach. hours Inspections 350 2100 labor hours Aluminum 500 mach. hours 150 1900 labor hours Total Cost $56000 $96000 Reynoso is considering switching from one overhead rate based on labor hours to activity-based costing. Total overhead costs assigned to titanium racquets, using a single overhead rate, are $79800 $106400 $76000. $96000.

Answer 1

Your required answer is option A i.e. $79,800

Explanation:

$Overhead Rate = \frac{Total cost of Assembly + Total cost of Inspection}{Labor hours of Titanium + Labor hours of Aluminium}$

$Overhead Rate = \frac{\$56,000 + \$96,000}{2100 + 1900}$

$Overhead Rate = \frac{\$152,000}{4,000}$

Overhead cost assigned to Titanium =

I hope this clear your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

Do give a thumbs up if you find this helpful.