Waterway Corporation manufactures titanium and aluminum tennis racquets. Waterways total overhead costs consist of assembly...
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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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