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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 $170 per machine hour, and the activity rate for Inspection is $580 per batch. The activity drivers are used as follows: Machine hours Number of batches Product A 1,100 49 Product X 3,800 17 Total 4,900 66 What is the amount of Machining cost assigned to Product A? Multiple Choice $646,000 O O $638,000 O $187,000 o $28,420
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