Lynwood, Inc. produces two different products (Product A and Product X) 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 activity rate for Machining is $130 per machine hour, and the activity rate for Inspection is $520 per batch. The activity drivers are used as follows: Product A Product X Total Machine hours 1,200 3,200 4,400 Number of batches 46 16 62 What is the amount of Machining cost assigned to Product X? Multiple Choice $416,000 $27,500 $520,000 $130,000 O O O O

Lynwood, Inc. produces two different products (Product A and Product X) 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 activity rate for Machining is $130 per machine hour, and the activity rate for Inspection is $520 per batch. The activity drivers are used as follows: Product A Product X Total Machine hours 1,200 3,200 4,400 Number of batches 46 16 62 What is the amount of Machining cost assigned to Product X? Multiple Choice $416,000 $27,500 $520,000 $130,000 O O O O

Name: Lynwood, Inc. produces two different products (Product A and Product
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Description: Lynwood, Inc. produces two different products (Product A and Product X) 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 activity rate

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 4CE: Larsen, Inc., produces two types of electronic parts and has provided the following data: There are...

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Lynwood, Inc. produces two different products (Product activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $180 per machine hour, and the activity rate for Inspection is $580 per batch. The activity drivers are used as follows: and Product X) using two different activities: Machining, which uses machine hours as an Product A Product X Total 1,200 Machine hours 3,200 4,400 Number of batches 55 18 73 What is the amount of Inspection cost assigned to Product X? Multiple Choice $31,900 $42,340 $216,000 $10,440 MacBook Pro ** 888 & 23 8 3 E R T Y P Q W J K > C V M command optio command
Saved Lynwood, Inc. produces two different products (Product A and Product X) 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 activity rate for Machining is $180 per machine hour, and the activity rate for Inspection is $540 per batch. The activity drivers are used as follows: Product A Product X Total Machine hours 1,400 3,100 4,500 Number of batches 47 18 65 15 What is the amount of Inspection cost assigned to Product A? Multiple Cholce $9.720 $25,380 $252,000
Lynwood, Inc. produces two different products (Product A and Product X) 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 activity rate for Machining is $180 per machine hour, and the activity rate for Inspection is $580 per batch. The activity drivers are used as follows: Product A: (machine hours= 1,200) (number of batches 55) Product X: (mahine hours= 3,200) (number of batches 18) Totals: (Machine hours= 4,400) (number of batches 73) What is the amount of Machining cost assigned to Product X?
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Atlanta Systems produces two different products, Product A, which sells for $650 per unit, and Product B, which sells for $1,200 per unit, using three different activities: Design, which uses Engineering Hours as an activity driver; Machining, which uses machine hours as an activity driver; and Inspection, which uses number of batches as an activity driver. The cost of each activity and usage of the activity drivers are as follows: Usage by Product A Usage by Product B Design (Engineering Hours) Machining (Machine Hours) Inspection (Batches) Cost $ 230,000 $2,600,000 $ 240,000 116 134 2,320 2,680 34 46 Atlanta manufactures 12,500 units of Product A and 10,172 units of Product B per month. Each unit of Product A uses $100 of direct materials and $45 of direct labor, while each unit of Product B uses $140 of direct materials and $75 of direct labor. Required: a. Calculate the activity rate for design. Rate for Design per hour b. Calculate the activity rate for machining. Rate for…
XYZ Co.produces two different products (Product Y 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 Yuses 20% of total ?machine hours and 75 % of total batches . What is the total Machining cost assigned to Product Z a. $ 7,500 b. $ 375,000 c. None of the given answer is correct d. $ $400,000