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 $220 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	1,400	3,500	4,900
Number of batches	53	16	69

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

Multiple Choice

• $308,000

• $26,500

• $8,000

• $34,500