Lymwood, 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 $180 per machine hour, and the activity rate for Inspection is $540 per batch. The activity drivers are used as follows: Product A Product X Total Machine hours 1,400 3,100 4,500 Number of batches 47 18 65 What is the amount of Inspection cost assigned to Product A? Multiple Choice $9,720 $25,380 $252,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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 $180 per machine hour, and the
activity rate for Inspection is $540 per batch. The activity drivers are used as follows:
Product A Product X
Total
Machine hours
1,400
3,100
4,500
Number of batches
47
18
65
15
What is the amount of Inspection cost assigned to Product A?
Multiple Cholce
$9.720
$25,380
$252,000
Transcribed Image Text:Saved 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 $180 per machine hour, and the activity rate for Inspection is $540 per batch. The activity drivers are used as follows: Product A Product X Total Machine hours 1,400 3,100 4,500 Number of batches 47 18 65 15 What is the amount of Inspection cost assigned to Product A? Multiple Cholce $9.720 $25,380 $252,000
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