Multiple Choice
Jackson,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.Product 5 uses 20% of total machine hours and 75% of total batches.What is the total Inspection cost assigned to Product 5?
A) $7,500
B) $22,500
C) $125,000
D) $375,000
Correct Answer:
Verified
Correct Answer:
Verified
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