Answered

Westonci.ca connects you with experts who provide insightful answers to your questions. Join us today and start learning! Get immediate and reliable answers to your questions from a community of experienced professionals on our platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

Lions Incorporation 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 $170 per machine hour, and the activity rate for Inspection is $510 per batch. The activity drivers are used as follows:

Product A Product X Total
Machine hours 1,900 3,900 5,800
Number of batches 45 22 67

What is the amount of Machining cost assigned to Product X?

a. $780,000
b. $22,500
c. $380,000
d. $950,000

Sagot :

anthougo

Answer:

Lions Incorporation

The amount of Machining cost assigned to Product X is:

= $663,000.

Explanation:

a) Data and Calculations:

                                          Product A             Product X             Total

Activities used                  Machining             Inspection

Activity driver                    Machine hours     Number of batches

Activity rate                       $170/ mh              $510/ batch

Usage of activity drivers:

Machine hours                 1,900                     3,900                      5,800

Number of batches              45                          22                            67

The amount of Machining cost assigned to Product X:

= 3,900 * $170 = $663,000

We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.