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Mills, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and
Mills, 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 $18 per machine hour, and the activity rate for Inspection is $47 per batch. The activity drivers are used as follows: Product A Product X Machine hours 1,720 2,040 Number of batches 130 220 What is the total cost of Inspection
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