Question
Table 1 The activity drivers are used as follows: Product A Product X Total Machine hours Number of batches 1,000 45 3,000 4,000 15 60
Table 1 The activity drivers are used as follows: Product A Product X Total Machine hours Number of batches 1,000 45 3,000 4,000 15 60 Table 2 The activity drivers are used as follows: Product A Product X Total Machine hours Number of batches 1,200 4,800 6,000 60 20 80 COVID Co. produces two different products (A and 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 cost of Machining is $500,000, while the cost of Inspection is $30,000. Product A uses 30% of total machine hours and 70% of total batches. What is the total activity cost assigned to product X? Select one: Oa. $125,000 O b. $171,000 Oc. $22,500 Od. $359,000 Oe. None of the given
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