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 $130 per machine hour, and the activity rate for Inspection is $520 per batch. The activity drivers are used as follows:

	Product A	Product X	Total
Machine hours	1,200	3,200	4,400
Number of batches	46	16	62

What is the amount of Inspection cost assigned to Product X?

Multiple Choice

• $156,000

• $32,000

• $27,500

• $8,320