Bervine, Inc. produces two different products (bompers and woobles) using two different activities: Machining, which uses machine
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Bervine, Inc. produces two different products (bompers and woobles) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. Usage of the activity drivers are as follows:
| Bompers | Woobles | Total | |
| Machine hours | 1,000 | 3,000 | 4,000 |
| Number of batches | 45 | 15 | 60 |
The activity rate for Inspection is $500 per batch. What is the total cost of Inspection?
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