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 $180,000, while the cost of Inspection is $35,000. Product 5 uses 40% of total machine hours and 60% of total batches. What is the total Inspection cost assigned to Product 5?

Multiple Choice

• $21,000

• $72,000

• $108,000

• $14,000