R-Ball Corporation manufacturesdeluxe and standard racquetball racquets. R-Ball's totaloverhead costs consist of assembly costs and inspection costs. Thefollowing information is available:
Cost Deluxe Standard Total Cost
Assembly 500 mach. hours 500mach. hours $30,000
Inspections350 150 $50,000
2,100labor hours 1,900 labor hours
R-Ball is considering switchingfrom one overhead rate based on labor hours to activity-basedcosting.
What is the total overhead costs assigned todeluxe racquets, using a single overhead rate
Using activity-based costing, how much assembly costis assigned to deluxe racquets?
Using activity-based costing, how much inspectionscost is assigned to deluxe racquets?