Waterway Corporation manufactures titanium and aluminum tennis racquets. Waterways total overhead costs consist of assembly...
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Accounting
Waterway Corporation manufactures titanium and aluminum tennis racquets. Waterways 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
500
mach. hrs
500
mach. hrs
$61000
Inspections
350
150
$114000
2100
labor hrs.
1900
labor hrs.
Waterway is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, what amount of inspections cost is assigned to titanium racquets?
$57000.
$65500.
$79800.
$106000.
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