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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,

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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 $170 per machine hour, and the activity rate for Inspection is $580 per batch. The activity drivers are used as follows: Machine hours Number of round trips Airbus 1,100 49 Boeing 3,800 Total 4,900 17 66 What is the amount of Inspection cost assigned to Airbus? o $9,860 o $28,420 o $38, 280 o $187,000

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