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Question 4 Not yet answered Marked out of 2.00 Please use Table 1 to ANSWER this question. COVID Co. produces two different products (Product A
Question 4 Not yet answered Marked out of 2.00 Please use Table 1 to ANSWER this question. COVID Co. 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 $125 per machine hour, and the activity rate for Inspection is $500 per batch. What is the amount of Inspection cost assigned to Product A? Flag question Select one: a. $22,500 O b. $500,000 c. $375,000 O d. None of the given ANSWER e. $7,500 Table 1 The activity drivers are used as follows: Total Machine hours Number of batches Product A 1,000 45 Product X 3,000 151 4,000 60
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