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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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