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What is the amount of Inspection cost assigned to Product X? Multiple Choice $31,900 $42,340 $216,000 $10,440

What is the amount of Inspection cost assigned to Product X? Multiple Choice $31,900 $42,340 $216,000 $10,440

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 the number of batches as an activity driver. The activity rate for Machining is $180 per machine hour, and the activity rate for Inspection is $580 per batch. The activity drivers are used as follows: | | Product A | Product X | Total | |-------------------|-----------|-----------|--------| | Machine hours | 1,200 | 3,200 | 4,400 | | Number of batches | 55 | 18 | 73 | **Question:** What is the amount of Inspection cost assigned to Product X? **Multiple Choice Options:** - $31,900 - $42,340 - $216,000 - $10,440
Transcribed Image Text: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 the number of batches as an activity driver. The activity rate for Machining is $180 per machine hour, and the activity rate for Inspection is $580 per batch. The activity drivers are used as follows: | | Product A | Product X | Total | |-------------------|-----------|-----------|--------| | Machine hours | 1,200 | 3,200 | 4,400 | | Number of batches | 55 | 18 | 73 | **Question:** What is the amount of Inspection cost assigned to Product X? **Multiple Choice Options:** - $31,900 - $42,340 - $216,000 - $10,440
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