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Culver, Inc. produces two different products (Product V3 and Product G8) using two different activities: Machining, which uses machine hours as an activity driver, and
Culver, Inc. produces two different products (Product V3 and Product G8) 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 drivers are used as follows: Product V3 Product G8 Total Machine hours Number of batches 1,000 45 3,000 15 4,000 60 The activity rate for Machining is $67.50 per machine hour. What is the total cost of Machining? Multiple Choice $274,050 $67,500 $202,500 $270,000
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