Question: Using activity-based costing how much inspection cost is assigned to carbon fiber frames? Rally Sports Gear manufactures carbon fiber and aluminum bicycle frames. Rally's total

Using activity-based costing how much inspection cost is assigned to carbon fiber frames?

Rally Sports Gear manufactures carbon fiber and aluminum bicycle frames. Rally's total overhead costs consist of assembly costs and inspection costs. The following information is available- Cost Carbon Fiber Aluminum Total Cost Assembly 600 mach. hours 400 mach hours $40,000 Inspections 2380 120 $60,000 Total Labor Hours 2,300 labor hours 1,700 labor hours Rally Sports Gear is considering switching from one overhead rate based on labor hours to activity-based costing (ABC). Using activity-based costing, how much inspection cost is assigned to carbon fiber frames

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