Question - R-Ball Corporation manufactures deluxe and standard racquetball racquets.
R-Ball's total overhead costs consist of assembly costs and inspection costs. The following information is available:
Cost Deluxe Standard Total Cost
Assembly 500 mach. hours 500 mach. hours $30,000
Inspections 350 150 $50,000
2,100 labor hours 1,900 labor hours
R-Ball 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 deluxe racquets?
A) $10,500.
B) $15,000.
C) $15,750.
D) $21,000.