Reynoso Corporation Manufactures Titanium and Aluminum Tennis Racquets Reynoso Is Considering Switching from One Overhead Rate Based on Overhead

question 14

Multiple Choice

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: $\begin{array}{cccc}\text { Cost }&\text {Titanium }&\text {Aluminum}&\text { Total Cost }\\\hline\text { Assembly } & 500 \text { mach. hours } & 500 \text { mach. hours } & \$ 60,000 \\\text { Inspections } & 350 & 150 & \$ 100,000 \\& 2,100 \text { labor hours } & 1,900 \text { labor hours } &\end{array}$ 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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Definitions:

Effector Organ

An organ that responds to a stimulus in a reflex arc, typically involving muscles or glands.

Transduction

The process by which foreign DNA is introduced into a cell by a virus or viral vector. In sensory science, it refers to the conversion of a stimulus into a signal by a sensory receptor.

Electrical Impulse

A signal that travels along the axon of a neuron, typically as a result of nerve cell activation.

Precentral Gyrus

A region of the frontal lobe in the brain responsible for voluntary movement, including the motor cortex.