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In: Accounting
Sitwell Corporation manufactures titanium and aluminum tennis racquets. Sitwell's total overhead costs consist of assembly costs...
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 | $45,000 |
| Inspections | 350 | 150 | $75,000 |
| 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?
Solutions
Expert Solution
IF YOU HAVE ANY DOUBTS COMMENT BELOW I WILL BE TTHERE TO HELP YOU..ALL THE BEST..
AS FOR GIVEN DATA..
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 | $45,000 |
| Inspections | 350 | 150 | $75,000 |
| 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
Solution:
Total Assembly hours = 500 + 500 = 1000
Total Assembly cost = $45,000
Cost per hour = $45,000 / 1000 = $45 per hour
Total Assembly cost = $22,500
Inspection costs are kept seperate.
PLS RATE THUMBS UP..ITS HELPS ME ALOT..I HOPE YOU UNDERSTAND..
THANK YOU...!!
ekkarill92 answered 2 months agoRelated Solutions
Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso’s total overhead costs consist of assembly costs...
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
$54000
Inspections
350
150
$94000
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
Sitwell Corporation manufactures titanium and aluminum tennis racquets. Sitwell’s total overhead costs consist of assembly costs...
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
$45,000
Inspections
350
150
$75,000
2,100 labor
hours
1,900 labor hours
Sitwell is considering switching from
one overhead rate based on labor hours to activity-based
costing.
Total overhead costs assigned to
titanium racquets, using...
Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso’s total overhead costs consist of assembly costs...
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
$50000
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 assembly cost is assigned to
titanium racquets?
$21000.
$35000.
$25000.
$26250.
Addison Company manufactures two products, Regular and Supreme. Addison’s total overhead costs consist of machining $2,500,000,...
Addison Company manufactures two products, Regular and Supreme.
Addison’s total overhead costs consist of machining $2,500,000, and
assembling $1,250,000. Information on the two products is:
Regular Supreme
Total
Direct labor
hours 10,000
15,000
25,000
Machine hours (machining)
10,000
30,000
40,000
Number of parts (assembly)
90,000
160,000
250,000
Direct Material
Costs
$50,000
$75,000
Direct Labor
Costs
$120,000
$180,000
Units Produced
100,000
20,000
1. Overhead applied to REGULAR
using traditional costing based on DIRECT
LABOR HOURS is:
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