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Calverton, Inc. produces two different products (Standard and Luxury) using two different activities: Machining, which uses machine hours as arn activity driver, and Inspection, which

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Calverton, Inc. produces two different products (Standard and Luxury) using two different activities: Machining, which uses machine hours as arn 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. Standard is assigned $150,000 in Machining cost, and $22,500 in Inspection cost. What proportion of Inspection activity is used by Luxury? o 25% o 33% 67%

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