Reynoso Corporation manufactures titanium and aluminium tennis racquets. Reynoso's total overhead costs consist of assembly costs...
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Reynoso Corporation manufactures titanium and aluminium tennis racquets. Reynoso's total overhead costs consist of assembly costs and inspection costs. The following information is available: Cost Titanium Aluminium Total Cost Assembly 500 mach. hours 500 mach. hours $60,000 Inspections 350 150 $100,000 2,100 labour hours 1,900 labour hours Reynoso is considering switching from one overhead rate based on labour hours to activity-based costing. Using activity-based costing, how much assembly cost is assigned to titanium racquets? 21,000 B 42,000 30,000 31,500 Reynoso Corporation manufactures titanium and aluminium tennis racquets. Reynoso's total overhead costs consist of assembly costs and inspection costs. The following information is available: Cost Titanium Aluminium Total Cost Assembly 500 mach. hours 500 mach. hours $60,000 Inspections 350 150 $100,000 2,100 labour hours 1,900 labour hours Reynoso is considering switching from one overhead rate based on labour hours to activity-based costing. Using activity-based costing, how much assembly cost is assigned to titanium racquets? 21,000 B 42,000 30,000 31,500
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Answer 30000 Explanation Calculation of total activity units Particu... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078025778
17th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
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