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Jackson, Inc. produces two different products (Product 5 and Product Z) using two different activities: Machining, which uses machine hours as an activity driver, and
Jackson, Inc. produces two different products (Product 5 and Product Z) 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 cost of Machining is $200,000, while the cost of Inspection is $38,500. Product 5 uses 38% of total machine hours and 62% of total batches. What is the total Inspection cost assigned to Product 5? Multiple Choice O $14,630 $124,000 $76,000 $23,870
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