Jefferson, Incorporated, produces two products (Product 5 and Product Z) using two activities: Machining, which uses machine hours as the cost driver, and Inspection, which uses the number of batches as the cost driver. The cost of Machining is $148,500, while the cost of Inspection is $41,180. The products have the following activity demands: Product 5 Product Z 1,485 3,015 52 19 Total 4,500 71 What proportion of the Machining activity is used by Product 5? Machine hours Number of batches Multiple Choice O O O O 67% 59% 33% 41%
Jefferson, Incorporated, produces two products (Product 5 and Product Z) using two activities: Machining, which uses machine hours as the cost driver, and Inspection, which uses the number of batches as the cost driver. The cost of Machining is $148,500, while the cost of Inspection is $41,180. The products have the following activity demands: Product 5 Product Z 1,485 3,015 52 19 Total 4,500 71 What proportion of the Machining activity is used by Product 5? Machine hours Number of batches Multiple Choice O O O O 67% 59% 33% 41%
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Jefferson, Incorporated, produces two products (Product 5 and Product Z) using two activities: Machining, which uses machine hours as the cost driver, and Inspection, which uses the number of batches as the cost
driver. The cost of Machining is $148,500, while the cost of Inspection is $41,180. The products have the following activity demands:
Product 5 Product Z
1,485 3,015
52
19
Total
4,500
71
What proportion of the Machining activity is used by Product 5?
Machine hours
Number of batches
Multiple Choice
O
67%
59%
33%
41%
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