Sitwell is considering switching from one overhead rate


Sitwell Corporation manufactures titanium and aluminum tennis racquets. Sitwell'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 $30,000
Inspections 350 150 $50,000
2,100 labor hours 1,900 labor hours

Sitwell 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?

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Cost Accounting: Sitwell is considering switching from one overhead rate
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