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 $750,000, while the cost of Inspection is $360,000. What is the activity rate for Inspection? Select one: Oa. $45,000 per batch O b. $1,500 per batch c. $6,000 per batch O d. $2,000 per batch O e. None of the given ANSWER 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
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