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Calverton, Incorporated produces two products (Standard and Luxury) using two activities: Machining, which uses machine hours as the cost driver, and Inspection, which uses the
Calverton, Incorporated produces two products (Standard and Luxury) using two activities: Machining, which uses machine hours as the cost driver, and Inspection, which uses the number of batches as the cost driver. The cost of Machining is $560,000, while the cost of Inspection is $33,600. Standard is assigned $201,600 in Machining cost, and $18,144 in Inspection cost. What proportion of the Inspection activity is used by Luxury? Multiple Choice
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