COVID 19 Co. produces two different products (Product Y and Product B) 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 activity rate for Machining is $125 per machine hour, and the activity rate for Inspection is $500 per batch. The activity drivers are used as follows: Product Y Product B Total Machine hours 1,000 3,000 4.000 Number of batches 45 15 60 What is the amount of Machining cost assigned to Product Y? Select one: a. $500,000 b.$$375,000 c. $125,000 d. 57.500 COVID 19, an accounting firm, provides consulting and tax planning services. For many years, the firm's total administrative cost (currently $270,000) has been allocated to services on this basis of billable hours to clients. A recent analysis found that 55% of the firm's billable hours to clients resulted from tax planning services, while 45% resulted from consulting services. The firm,contemplating a change to activity-based costing, has identified three components of administrative cost, as follows: Staff Support $200,000 In-house computing charges 50,000 Miscellaneous office costs 20,000 Total $270,000 A recent analysis of staff support found a strong correlation with the number of clients served. In contrast, in-house computing and miscellaneous office cost varied directly with the number of computer hours logged and number of client transactions, respectively. Consulting clients served totaled 35% of the total client base, consumed 30% of the firm's computer hours, and accounted for 20% of the total client transactions If the firm switched from its current accounting method to an activity-based costing system, the amount of administrative cost chargeable to tax planning serices would Select one: a. decrease by $86,500 b. decrease by $59.500. c decrease by $32,500. d. decrease by $58,000