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
Assembly500 mach. hours500 mach. hours$50000
Inspections350150$90000
2100 labor hours1900 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?
A. $21000.
B. $35000.
C. $25000.
D. $26250.

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