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C ertomheducation. com/hmtpx psEdvesmovies-Hawkes learning Blackboard Learn Welcome . myutrgv (1) Ranbow Six . Six D Exam . Time remaining: 130.04 7. Lynwood, Inc. produces two different products (Product A and Product X) 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 activity rate for Machining is $125 per machine hour and the activity rate for inspection is $500 per batch. The activity drivers are used as follows Product A 1,000 45 Product X 3,000 15 Total 4,000 Machine hours Number of batches 60 What is the amount of Inspection cost assigned to Product A? O $125.000 O $22.500 O $30.000 O $7.500 8-15 PM 3/12/2018 0 Type here to searchExplanation / Answer
Inspection cost assigned to Product - A =
In the question, we are directly given the activity rate for Inspection = $ 500 per batch
For product - A activity driver demand = 45 batches
So cost to be assigned to product - A = 500 * 45 = $ 22500 ............. Option - B
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