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 Titaniium Aluminum Total Cost
Assembly 500 mach. hours 500 mach. hours $60,000
Inspections 350 250 $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.
Total overhead costs assigned to titanium racquets, using a single overhead rate, are
(A) $80,000.
(B) $84,000.
(C) $100,000
(D) $112,000.
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