Lynwood, Incorporated, produces two products (Product A and Product X) 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 activity rate for Machining is $140 per machine hour, and the activity rate for Inspection is $500 per batch. The products have the following activity demands: Machine hours Product A Product X Total 1,100 3,500 4,600 53 Number of batches 21 74 What is the amount of Machining cost assigned to Product X? Multiple Choice $26,500 $550,000 $154.000

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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.