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Hayden Co. produces two different products (Product A and Product B) using two different activities: Fabrication, which uses machine hours as an activity driver, and

Hayden Co. produces two different products (Product A and Product B) using two different activities: Fabrication, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Fabrication is $130 per machine hour, and the activity rate for Inspection is $425 per batch. The activity drivers are used as follows:

Product A

Product B

Total

Machine hours

1,000

3,000

4,000

Number of batches

45

15

60

What is the amount of Inspection cost assigned to Product A?

$130,000

$22,500

$25,500

$19,125

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