213k views
5 votes
Sitwell 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) $60,000.
B) $63,000.
C) $75,000.
D) $84,000.

1 Answer

2 votes

Final answer:

The calculated total overhead cost for titanium racquets using a single overhead rate based on labor hours is $1,800, which does not match any of the options provided. There might be a typo or missing information in the question.

The correct option is not given.

Step-by-step explanation:

The question involves calculating the total overhead costs assigned to titanium racquets using a single overhead rate based on labor hours. From the information provided, we need to add the labor cost of technology 1, technology 2, and technology 3 to get the total overhead costs. Each technology's labor cost is calculated by multiplying the number of hours by the worker's cost.


  • Cost of technology 1: 10 × $90 = $900

  • Cost of technology 2: 7 × $90 = $630

  • Cost of technology 3: 3 × $90 = $270

Adding these amounts gives us the total overhead costs: $900 + $630 + $270 = $1,800. However, the question asked for a selection from given choices, and none of them matches the calculated total. There might be a typo or missing information in the question. Under normal circumstances, the calculated total overhead cost should match one of the given options:


  • A) $60,000

  • B) $63,000

  • C) $75,000

  • D) $84,000

Since none of these match the calculated total of $1,800, further information might be required to provide the correct answer from the provided options.

The correct option is not given.

User Karthik Manchala
by
8.0k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.