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Washington,Inc

Question 129

Multiple Choice

Washington,Inc.produces two different products (Product C and Product 2) 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 $750,000,while the cost of Inspection is $90,000.The activity drivers are used as follows: Washington,Inc.produces two different products (Product C and Product 2) 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 $750,000,while the cost of Inspection is $90,000.The activity drivers are used as follows:   What is the activity rate for Inspection? A) $45,000 per batch B) $1,500 per batch C) $6,000 per batch D) $2,000 per batch What is the activity rate for Inspection?


A) $45,000 per batch
B) $1,500 per batch
C) $6,000 per batch
D) $2,000 per batch

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