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