Question
20) Tigerwoods, Inc produces two different products (product T and product W) using two different activities. Machining which uses machine hours and inspection that uses
20) Tigerwoods, Inc produces two different products (product T and product W) using two different activities. Machining which uses machine hours and inspection that uses a number of batched are respective cost drivers. The activity rate for the machining is $250 per machine hour and $750 per batch for inspection. The activity drivers are used as following: Product T Product W Total Machine hours 1000 3000 4000 Number of batches 45 15 60 What is the amount of Machining costs assigned to Product W? A. 33,750 B 750,000 C. 250,000 D. 11,250 And what is the amount of inspection costs assigned to Product T? A. 33,750 B. 750,000 C. $250,000 D. 11,250
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