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Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining which uses machine hours as an activity driver and
Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining which uses machine hours as an activity driver and activity driver. The activity rate for Machining is $140 per machine hour, and the activity rate for Inspection is $500 per batch. The activity drivers are used as follows: Product A Product I 1,100 3,500 Number of batches What is the amount of Machining cost assigned to Product A? Machine hours Total 4,600 74 53 21 Multiple Choice $25,500 16000 WO
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