Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso's total overhead costs consist of assembly...
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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 Aluminum Assembly 500 mach, hours 500 mach. hours Inspections 350 150 2100 labor hours 1900 labor hours Total Cost $ 40000 $ 80000 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 O $ 60000 O $ 80000. O $63000 O $ 84000
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