Question
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
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 A? Select one: O a. 67% O b. 80% O c. 20% O d. None of the given ANSWER O e. 25% 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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