7T-19

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 $500,000, while the cost of Inspection is $30,000. The activity drivers are used as follows: Machine hours Number of batches Product 5 Product z 1,200 4,800 60 20 Total 6,000 80 What proportion of Inspection activity is used by Product 5? Multiple Choice 75% O 67% O 25% o 33%