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 $500 per machine hour, and the activity rate for Inspection is $125 per batch. What is the amount of Machining cost assigned to Product A? Select one: O a. $500,000 O b. $1,500,000 O c. None of the given ANSWER O d. $125,000 O e. $22,500 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 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
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