Godo Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso's total overhead costs consist of assembly costsand inspection costs. The following information is available:CostAssemblyInspectionsTitanium500 mach hours3502100 labor hours$23000,$21000.$24150.$32200.Aluminum500 mach. hours1501900 labor hoursTotal Cost$46000$86000Reynoso 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?

Lets understand the basics.Traditional based costing, all overhead is allocated using traditional…

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 Assembly Inspections Titanium 500 mach hours 350 2100 labor hours Aluminum 500 mach. hours $23000 $21000. $24150. $32200. 150 1900 labor hours Total Cost $46000 $86000 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?

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 Assembly Inspections Titanium 500 mach hours 350 2100 labor hours Aluminum 500 mach. hours $23000 $21000. $24150. $32200. 150 1900 labor hours Total Cost $46000 $86000 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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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: Titanium Assembly 500 mach, hours Inspections 350 2100 labor hours Cost Aluminum 500 mach. hours 150 O $104000. O $119000. O $85000. O $89250. 1900 labor hours Total Cost $66000 $104000 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
Lily Corporation manufactures titanium and aluminum tennis racquets. Reynoso's total overhead costs consist of assembly costs and inspection costs. The following information is available regarding activity cost pools, estimated use of activities per product, and total estimated overhead costs: Activity Cost Pools Titanium Aluminum Total Cost Assembly 500 mach. hrs. 500 mach, hrs. $80000 350 150 $118000 Inspections 2100 labor hrs. 1900 labor hrs. Lily is considering switching from one overhead rate based on labor hours to activity-based costing. Total overhead costs assigned to titanium racquets computed using a single overhead rate are $99000. $118000. $103950. O $138600.
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 $40000 Inspections 350 150 $100000 2100 labor hours 1900 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 O $70000. O $73500. O $98000. O $100000.
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 $40000 Inspections 350 150 $80000 2100 labor hours 1900 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 $63000. $60000. $80000. $84000.
Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso's total overhead costs consist of assembly costs and inspection costs. The followin information is available: Cost Titanium Aluminum Total Cost Assembly 500 mach. hours 500 mach. hours $35000 Inspections 350 150 $90000 2100 labor hours 1900 labor hours Reynoso is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, how much inspections cost is assigned to titanium racquets? O $63000. O $27000. O $37250. O $45000.
ABC Company is introducing a new product. The managers are trying to decide whether to make one of its components or to buy it from an outside supplier. The space that could be used to make the part has no alternative use. The outside supplier will sell the part to ABC for P800 per unit. Following is an estimate of per-unit costs if ABC makes the part: Materials P225 ; Direct labor P250 ; Variable manufacturing overhead P225 ; Fixed manufacturing overhead P325. Fixed manufacturing overhead consists of depreciation on machinery and a share of the costs of the factory based on the floor space that manufacturing the part would occupy. Determine whether ABC should make or buy the part. Also you have to indicate the amount favoring the better alternative. please answer
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 44000 Inspections 350 150 84000 2100 labor hours 1900 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?
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 $27000 Inspections 350 150 $80000 2100 labor hours 1900 labor hours Reynoso is considering switching from one overhead rate based on labor hours to activity-based costing.Using activity-based costing, how much inspections cost is assigned to titanium racquets? $24000. $40000. $56000. $29000.
Flash E Card Manufacturing manufactures software parts for the computer software systems that produce e -cards. The Flash II part is currently manufactured in the Computer Department. The Data Department also produces the part and the plant has excess capacity to produce the Flash ll part. The current market price of the Flash Il part is $500. The managerial accountant reported the following manufacturing costs and variable expense data: Flash E-Card Manufacturing Manufacturing Costs and Variable Expense Report Flash Component Direct materials $800 $170 Direct labor $110 Variable manufacturing overhead Fixed manufacturing overhead (current production level) Variable selling expenses (only incurred on sales to outside consumers) $125 $140 If the highest acceptable transfer price is $500 in the market, what is the lowest acceptable in house price the Data Department should receive to produce the part in house at the Computer Department? O A. $1,080 О В. $800 О С. $170 O D. $110
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 Aluminium 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. Total overhead costs assigned to the titanium racquets, using a single overhead rate, are
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 Aluminium 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 the titanium racquets?
Mozaic Inc. has decided to introduce a new product, which can be manufactured by either a computer-assisted manufacturing system (CAM) or a labor-intensive production system (LIP). The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows: www CAM System LIP System Direct Material $5.00 $5.60 Direct Labor (DLH) 0.5 DLH x $12 $6.00 0.8 DLH x $9 $7.20 Variable Overhead 0.5 DLH x $6 $3.00 0.8 DLH x $6 $4.80 Fixed Overhead* $2,440,000 $1,320,000 * These costs are directly traceable to the new product line. They would not be incurred if the new product were not produced. The company's marketing research department has recommended an introductory unit sales price of $30. Selling expenses are estimated to be $500,000 annually plus $2 for each unit sold. (Ignore income taxes.) Required: 1. Describe the circumstances under which the firm should employ each of the two manufacturing methods. 2. Identify some business…