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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 $200 per machine hour, and the activity rate for Inspection is $500 per batch. The activity drivers are used as follows: Product A 1,900 45 Product X 3,900 Machine hours Number of batches Total 5,800 67 22 What is the amount of Inspection cost assigned to Product A? Multiple Choice 0 $33,500 0 $380,000 0 $22,500 0 $11,000
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