1. Jackson, Incorporated produces two products (Product 5 and Product Z) using two activities: Machining, which uses machine hours as the cost driver, and Inspection, which uses the number of batches as the cost driver. The cost of Machining is $500,000, while the cost of Inspection is $30,000. Product 5 uses 20% of total machine hours and 75% of total batches. What is the total Inspection cost assigned to Product 5?

Multiple Choice-1)$7,500 2)$22,500 3)$125,000) $375,000

2. Jackson, Incorporated produces two products (Product 5 and Product Z) using two activities: Machining, which uses machine hours as the cost driver, and Inspection, which uses the number of batches as the cost driver. The cost of Machining is $500,000, while the cost of Inspection is $30,000. Product 5 uses 20% of total machine hours and 75% of total batches. What is the total Inspection cost assigned to Product 5?

Multiple Choice 1)$7,500 2)$22,500 3)$125,000 4)$375,000

3. Jackson, Incorporated produces two products (Product 5 and Product Z) using two activities: Machining, which uses machine hours as the cost driver, and Inspection, which uses the number of batches as the cost driver. The cost of Machining is $500,000, while the cost of Inspection is $30,000. Product 5 uses 20% of total machine hours and 75% of total batches. What is the total Inspection cost assigned to Product Z?

Multiple Choice-1)$7,500 2)$22,500 3)$125,000 4)$375,000

4. Cranberry, Incorporated has received a special order for 100 units of its product at a special price of $2,100. The product normally sells for $2,800 and has the following manufacturing costs:

	Cost per Unit
Direct materials	$ 840
Direct labor	420
Variable manufacturing overhead	560
Fixed manufacturing overhead	700
Total unit cost	$ 2,520

Assume that Cranberry has sufficient capacity to fill the order without harming normal production and sales. If Cranberry accepts the order, what effect will the order have on the company's short-term profit?

Multiple Choice

$42,000 decrease

$42,000 increase

$70,000 decrease

$28,000 increase