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 $720,000, while the cost of Inspection is $43,200. Standard is assigned $374,400 in Machining cost, and $30,240 in Inspection cost. What proportion of Inspection activity is used by Standard?

Multiple Choice

• 44%

• 50%

• 70%

• 41%