Gray Fullbuster produces two different products (Square Ice Cube Trays and Round Ice Cube Trays) usin activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses numb activity driver. The activity rate for Machining is $170 per machine hour, and the activity rate for Inspect batch. The activity drivers are used as follows: Machine hours Number of batches Square Ice Cube Trays 1,700 51 Round Ice Cube Trays 3,400 18 Total 5,100 69 What is the amount of Inspection cost assigned to Square Ice Cube Trays? Multiple Choice $26,010 $9,180

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Gray Fullbuster produces two different products (Square Ice Cube Trays and Round Ice Cube Trays) 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 $170 per machine hour, and the activity rate for Inspection is $510 per
batch. The activity drivers are used as follows:
Machine hours
Number of
batches
Square Ice Cube
Trays
1,700
51
Round Ice Cube
Trays
3,400
18
Total
5,100
69
What is the amount of Inspection cost assigned to Square Ice Cube Trays?
Multiple Choice
$26,010
$9,180
$289,000
$35,190
Transcribed Image Text:Gray Fullbuster produces two different products (Square Ice Cube Trays and Round Ice Cube Trays) 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 $170 per machine hour, and the activity rate for Inspection is $510 per batch. The activity drivers are used as follows: Machine hours Number of batches Square Ice Cube Trays 1,700 51 Round Ice Cube Trays 3,400 18 Total 5,100 69 What is the amount of Inspection cost assigned to Square Ice Cube Trays? Multiple Choice $26,010 $9,180 $289,000 $35,190
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