Solved

Jefferson,Inc

Question 83

Multiple Choice

Jefferson,Inc.produces two different products (Product 5 and Product Z) 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 cost of Machining is $500,000,while the cost of Inspection is $30,000.Usage of the activity drivers are as follows: What proportion of Machining activity is used by Product Z?
Jefferson,Inc.produces two different products (Product 5 and Product Z) 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 cost of Machining is $500,000,while the cost of Inspection is $30,000.Usage of the activity drivers are as follows: What proportion of Machining activity is used by Product Z? A) 25% B) 33% C) 67% D) 80%


A) 25%
B) 33%
C) 67%
D) 80%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q2: When target costing is used,the target cost

Q28: Which type of quality cost would a

Q32: Volume-based cost systems tend to:<br>A) Under-cost low-volume

Q66: An activity that is performed to support

Q69: A volume-based allocation measure would vary proportionately

Q78: In a traditional volume-based cost system,total manufacturing

Q80: A value-added activity is one that enhances

Q81: The first step in ABC is to

Q88: Yallow,Inc.manufactures teddy bears and dolls.Currently,Yallow makes 2,000

Q124: An activity that is performed for each