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 $150 per machine hour, and the activity rate for Inspection is $570 per batch. The activity drivers are used as follows: Machine hours Number of batches Product A Product X 1,900 3,200 54 21 Total 5,100 75 What is the amount of Inspection cost assigned to Product A? Multiple Choice $30,780 $285,000 $42.750 $11,970