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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
Boswell Company manufactures two products , Regular and Supreme . Boswell ‘ s overhead costs consist of machining , $ 3,000,000 ; and assembling , $ 1,500,000 . Information on the two products is : Regular Supreme Direct labor hours 10,000 15,000 Machine hours 10,000 30,000