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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 $580 per batch. The activity drivers are used as follows
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