FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 $139,400, while the cost of Inspection is $38,640. The activity drivers are used as follows:
Product 5: (machine hours= 1,394) (number of batches 51)
Product Z: (mahine hours= 2,706) (number of batches 18)
Totals: (Machine hours= 4,100) (number of batches 69)
What proportion of Machining activity is used by Product 5?
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