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Lynwood, Inc. produces two different products (Product A and Product X) using two different activides: Machining, which uses machine hours as an activity driver, and
Lynwood, Inc. produces two different products (Product A and Product X) using two different activides: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an actvity driver. The activity rate for Machining is $140 per machine hour, and the activity rate for Inspection Is $560 per batch. The activity drivers are used as follows: Product A ProductXTotal Machine hours Number of batches 3,000 4100 18 Whet is the amount of Machining cost assigned to Product A O $154,000 O $28,560 O$616,000 O$420.000
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