Lufthansa, Inc. uses two different carriers (Airbus and Boeing) and allocated costs with two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of round trips as an activity driver. The activity rate for Machining is $180 per machine hour, and the activity rate for Inspection is $520 per batch. The activity drivers are used as follows: Machine hours Number of round trips Airbus 1,300 55 Boeing 3,900 24 Total 5,200 79 What is the amount of Machining cost assigned to the Airbus? Multiple Choice $702,000 Looo $28,600 $676,000 Arthur Andersen LLP's strategic consulting team had been hired to advise Enron Inc. on their costing system. They correctly advise them that the activity- rate method involves: Multiple Choice dividing the total activity driver by the total activity cost. calculating the proportion of each activity driver used by each product. calculating an activity rate that is similar to the predetermined overhead rate. multiplying the total activity cost by the total activity driver