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

Calverton, Inc. produces two different products (Standard and Luxury) 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 $900,000, while the cost of Inspection is $54,000. Standard is assigned $630,000 in Machining cost, and $47,520 in Inspection cost. What proportion of Inspection activity is used by Luxury? Multiple Choice 57% 12% 54% 20%

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