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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

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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 uses number of batches as an activity driver. The cost of Machining is $700,000, while the cost of Inspection is $42,000. Standard is assigned $350,000 in Machining cost, and $28,560 in Inspection cost. What proportion of Inspection activity is used by Standard? Multiple Choice

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