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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 Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $125 per machine hour, and the activity rate for Inspection is $500 per batch. The activity drivers are used as follows: Machine hours Number of batches Product A 1.000 45 Product X 3.000 15 Total 4,000 60 What is the amount of Machining cost assigned to Product X? O $125.000 O $375,000 O $500,000 O $22,500
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