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 $200 per machine hour, and the activity rate for Inspection is $500 per batch. The activity drivers are used as follows: Product A Product X Total Machine hours 1,900 3,900 5,800 Number of batches 45 22 67 What is the amount of Machining cost assigned to Product A? Multiple Choice $22,500 $950,000 $380,000 $780,000
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Home » Business » 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.