5)

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:

	Product A	Product X	Total
Machine hours	1,900	3,900	5,800
Number of batches	45	22	67

What is the amount of Machining cost assigned to Product X?

$780,000

$22,500

$380,000

$950,000