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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:

Product A Product X Total
Machine hours 1,000 3,000 4,000
Number of batches 45 15 60

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

$125,000

$22,500

$500,000

$375,000

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