Multiple Choice
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 $125 per machine hour, and the activity rate for Inspection is $500 per batch. The activity drivers are used as follows: What is the amount of Machining cost assigned to Product X?
A) $22,500
B) $125,000
C) $375,000
D) $500,000
Correct Answer:

Verified
Correct Answer:
Verified
Q20: Jackson,Inc.produces two different products (Product 5 and
Q50: The activity-rate method involves:<br>A)dividing the total activity
Q53: Pecan Inc. produces water valves. Overhead costs
Q59: If the total activity cost were unknown,
Q91: Calverton,Inc.produces two different products (Standard and Luxury)using
Q111: In target costing,the target cost should be
Q125: Portland,Inc.has formed four activity cost pools: Product
Q127: One side benefit of JIT is that:<br>A)the
Q131: External failure costs are costs that:<br>A)are incurred
Q132: Internal failure costs are costs that:<br>A)are incurred