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 $660,000, while the cost of Inspection is $39,600. Standard is assigned $303,600 in Machining cost, and $29,700 in Inspection cost. What proportion of Machining activity is used by Luxury?

Multiple Choice

• 58%

• 51%

• 54%

• 56%