R-ball is considering switching from one overhead rate, Ask an Expert

Accounting

R-Ball Corporation manufactures deluxe and standard racquetball racquets.

R-Ball's total overhead costs consist of assembly costs and inspection costs. The following information is available:

Cost Deluxe Standard Total Cost

Assembly 500 mach. hours 500 mach. hours $30,000

Inspections 350 150 $50,000

2,100 labor hours 1,900 labor hours

R-Ball is considering switching from one overhead rate based on labor hours to activity-based costing. Total overhead costs assigned to deluxe racquets, using a single overhead rate, are

A) $40,000.

B) $42,000.

C) $50,000.

D) $56,000.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9413166

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