Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $200 per machine hour, and the activity rate for Inspection is $500 per batch. Usage of the activity drivers are as follows:

What is the amount of Machining cost assigned to Product X ?
(i). $780,000
(ii). $22,500
(iii). $380,000
(iv). $950,000

Transcribed Image Text:

Product Product 5,800 Machine hours 1,900 3,900 Number of batches 45 67