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Lynwood, Incorporated, produces two products (Product A and Product X ) using two activities: Machining. which uses machine hours as the cost driver, and Inspection,
Lynwood, Incorporated, produces two products (Product A and Product X ) using two activities: Machining. which uses machine hours as the cost driver, and Inspection, which uses number of batches as the cost driver. The activity rate for Machining is $140 per machine hour, and the activity rate for Inspection is $560 per batch. The products have the following activity demands: What is the amount of Inspection cost assigned to Product A? Multiple Choice $40,320 $30.240 $10,080 $196.000
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