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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 | 1,500 | 3,900 | 5,400 |
Number of batches | 47 | 25 | 72 |
The activity rate for Inspection is $585 per batch. What is the total cost of Inspection?
$42,120
$27,495
$14,625
$146,250
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