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verterson, Inc. produces two different products (Products and Product Z) using we different activities: Machining, which uses machine hours as an activity driver, and Inspection,
verterson, Inc. produces two different products (Products and Product Z) using we 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 $300,000, while the cost of Inspection is $30,000. The activity drivers are used as follows: Machine hours Number of batches 1 Product 5 Product Z 1,200 4 ,800 60 60 20 Total 6,000 80 What proportion of Machining activity is used by Product Z? A) 80% B) 33% C) 25% D) 67%
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