Question
The activity drivers are used as follows: Machine hours Number of batches Table 2 Product A Product X Total 1,200 4,800 6,000 60 20 80
The activity drivers are used as follows: Machine hours Number of batches Table 2 Product A Product X Total 1,200 4,800 6,000 60 20 80 Please use Table 2 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 cost of Machining is $500,000, while the cost of Inspection is $30,000. What proportion of Machining activity is used by Product X? Select one: a. 20% O b. 67% O c. None of the given ANSWER Od. 80% e. 25%
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