1. Jefferson, Inc. produces two different products (Product 5 and Product Z) 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 cost of Machining is $147,000, while the cost of Inspection is $38,280. The activity drivers are used as follows:

	Product 5	Product Z	Total
Machine hours	1,470	3,430	4,900
Number of batches	35	15	50

What proportion of Inspection activity is used by Product Z?

30%

70%

62%

38%