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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 $916,300, while the cost of Inspection is $33,150. The activity drivers are used as follows:

Product C Product 2 Total
Machine hours 1,800 3,100 4,900
Number of batches 46 19 65

What is the activity rate for Machining?

$509 per machine hour

$187 per machine hour

$296 per machine hour

$262 per machine hour

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