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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 $1,100,000, while the cost of inspection is $39,128. The activity drivers are used as follows: Total Machine hours Number of batches Product C Product 2 1,900 3,100 49 18 5,000 67 What is the activity rate for Inspection? Multiple Choice $799 per batch $220 per batch $584 per batch 52,174 per batch
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