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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,
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: Machine hours Product C Product 2 Total 1,000 45 3,000 15 4,000 60 Number of batches What is the activity rate for Inspection? Multiple Choice $45,000 per batch $1,500 per batch $6,000 per batch $2,000 per batch
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