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Culver, Incorporated produces two products (Product V3 and Product G8) using two activities: Machining, which uses machine hours as the cost driver, and Inspection, which
Culver, Incorporated produces two products (Product V3 and Product G8) 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 products have the following activity demands: Product V3 Product G8 Total Machine hours 1,400 3,200 4,600 Number of batches 54 18 72 The activity rate for Inspection is $560 per batch. What is the total cost of Inspection?
$30,240
$40,320
$10,080
$100,800
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