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Jefferson, Inc

Question 62

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. The activity drivers are used as follows: 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. The activity drivers are used as follows: What proportion of Inspection activity is used by Product Z? A) 25% B) 33% C) 67% D) 75% What proportion of Inspection activity is used by Product Z?


A) 25%
B) 33%
C) 67%
D) 75%

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