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 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? Select one: Oa. $500,000 b. None of the given ANSWER OC $7,500 d. $22,500 O e $375,000 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started