Multiple Choice
Cottonwood,Inc.produces two different products (Standard and Luxury) 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.Standard uses 30% of total machine hours and 70% of total batches.What is the total activity cost assigned to Standard?
A) $22,500
B) $125,000
C) $171,000
D) $359,000
Correct Answer:
Verified
Correct Answer:
Verified
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