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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 $150 per machine hour, and the activity rate for Inspection is $570 per batch. The activity drivers are used as follows:
Product A | Product X | Total | |
Machine hours | 1,900 | 3,200 | 5,100 |
Number of batches | 54 | 21 | 75 |
What is the amount of Machining cost assigned to Product A?
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