Question
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
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 cost of Machining is $666,680, while the cost of Inspection is $95,000. What is the activity rate for Machining? Select one: O a. $187.50 per machine hour O b. $250.00 per machine hour O c. $5750.00 per machine hour Od. $166.67 per machine hour O e. None of the given ANSWER The activity drivers are used as follows: Machine hours Number of batches The activity drivers are used as follows: Machine hours Number of batches Table 1 Product A Product X Total 1,000 3,000 4,000 45 15 60 Table 2 Product A Product X Total 1,200 4,800 6,000 60 20 80
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