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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