Cottonwood, 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 $161,000, while the cost of Inspection is $40,000. Standard uses 30% of total machine hours and 65% of total batches. What is the total activity cost assigned to Luxury? Multiple Choice $14,000 $126,700 $74,300 $112.700 Yallow, Incorporated, manufactures teddy bears and dolls. Currently, Yallow makes 2,400 teddy bears each month. Each teddy bear uses $8.00 in direct materials and $2.50 in direct labor. Yallow uses two activities in manufacturing the teddy bears: Sewing and Processing. The cost associated with Sewing is $18,000 a month, allocated on the basis of direct labor hours. The cost associated with Processing is $12,000 a month, allocated on the basis of batches. The products have the following activity demands: Direct labor hours Teddy Bears 208 Dolls 208 Batches 91 169 What is the total manufacturing cost for one teddy bear? Multiple Choice $10.50 $16.00 $12.50 $15.00