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 $800,000, while the cost of Inspection is $48,000. Standard is assigned $480,000 in Machining cost, and $36,000 in Inspection cost. What proportion of Machining activity is used by Standard?

Multiple Choice

• 80%

• 61%

• 66%

• 60%