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Jefferson, Inc. produces two different products (Product 5 and Product 2) using two different activities: Machining, which uses machine hours as an activity driver, and
Jefferson, Inc. produces two different products (Product 5 and Product 2) 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 $324,000, while the cost of Inspection is $41,760. The activity drivers are used as follows: Product 5 Product z Total Machine hours Number of batches 3,240 20 2,160 30 5,400 50 What proportion of Inspection activity is used by Product Z? Multiple Choice O 60% 40% 32% 68%
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