Question
7 Not yet answered Marked out of 2.00 Flag question Please use Table 2 to ANSWER this question. COVID Co. produces two different products (Product
7 Not yet answered Marked out of 2.00 Flag question Please use Table 2 to ANSWER this question. COVID Co. 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 cost of Machining is $500,000, while the cost of Inspection is $30,000. What proportion of Inspection activity is used by Product A? Select one: O a. 67% Ob. 75% O c. 25% O d. 20% O e. None of the given ANSWER Question 8 Not yet answered Marked out of 2.00 Flag question Please use Table 1 to ANSWER this question. COVID CO. 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 cost of Machining is $750,000, while the cost of Inspection is $360,000. What is the activity rate for Inspection? Select one: Oa. $2,000 per batch Ob. None of the given ANSWER Oc. $1.500 per batch Table 1 The activity drivers are used as follows: Product A Product X Total Machine hours Number of batches 1,000 45 3,000 4,000 15 60 Table 2 The activity drivers are used as follows: Machine hours Number of batches Product A Product X Total 1,200 4,800 6,000 60 20 80
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