ACC 560 MART Extraordinary Life/acc560mart.com ACC 560 MART Extraordinary Life/acc560mart.com | Page 24

===================================================================================== ACC 560 Week 4 Quiz 2( Chapter 4)
B. Determine the contribution margin per direct labor hour.
C. Determine which product should be produced and the total contribution margin for that product.

===================================================================================== ACC 560 Week 4 Quiz 2( Chapter 4)

FOR MORE CLASSES VISIT www. acc560mart. com

ACC 560 Week 4 Quiz 2( Chapter 4) Question 1
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 Total Cost Assembly 500 mach. hours 500 mach. hours $ 60,000 Inspections 350 150 $ 100,000 2,100 labor hours 1,900 labor hours
Reynoso is considering switching from one overhead rate based on labor hours to activity-based costing.
Using activity-based costing, how much assembly cost is assigned to titanium racquets
Question 2