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Washington, Inc. produces two different products (Product C and Product 2) using two different activities: Machining, which uses machine hours as an activity driver, and
Washington, Inc. produces two different products (Product C and Product 2) 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 $90,000. The activity drivers are used as follows Product C ,000 45 Product 2 3,000 15 Total 4,000 Machine hours Number of batches 60 What is the activity rate for Machining? $187.50 per machine hour $166.67 per machine hour $250.00 per machine hour $5750.00 per machine hour
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