7T-17

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 $139,400, while the cost of Inspection is $38,640. The activity drivers are used as follows: Machine hours Number of batches Product 5 Product z 1,394 2,706 51 18 Total 4,100 69 What proportion of Machining activity is used by Product Z? Multiple Choice o 34% 58% o 66% O 42%