Lynwood, Incorporated, produces two products (Product A and Product X) using two activities: Machining, which uses machine hours as the cost driver. and Inspection, which uses the number of batches as the cost driver. The activity rate for Machining is $140 per machine hour, and the activity rate for Inspection is $500 per batch. The products have the following activity demands: Machine hours Product A Product X Total 1,100 3,500 4,600 53 Number of batches 21 74 What is the amount of Machining cost assigned to Product X? Multiple Choice $26,500 $550,000 $154.000

Lynwood, Incorporated, produces two products (Product A and Product X) using two activities: Machining, which uses machine hours as the cost driver. and Inspection, which uses the number of batches as the cost driver. The activity rate for Machining is $140 per machine hour, and the activity rate for Inspection is $500 per batch. The products have the following activity demands: Machine hours Product A Product X Total 1,100 3,500 4,600 53 Number of batches 21 74 What is the amount of Machining cost assigned to Product X? Multiple Choice $26,500 $550,000 $154.000

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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