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Lynwood, Inc

Question 56

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: 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 What is the amount of Machining cost assigned to Product X?


A) $22,500
B) $125,000
C) $375,000
D) $500,000

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