7)

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 $107,800, while the cost of Inspection is $38,280. Usage of the activity drivers are as follows:

	Product 5	Product Z	Total
Machine hours	1,078	3,822	4,900
Number of batches	49	17	66

What proportion of Machining activity is used by Product 5?

70%

78%

22%

30%