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Cottonwood, Inc. produces two different products (Standard and Luxury) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection,
Cottonwood, 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 $135,000, while the cost of Inspection is $42,000. Standard uses 30% of total machine hours and 70% of total batches. What is the total activity cost assigned to Standard? Multiple Choice $40,500 $69,900 $29,400 $107,100
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