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Business, 15.02.2021 20:30 srl63

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. Usage of the activity drivers are as follows: Product A Product X Total
Machine hours 1,400 3,100 4,500
Number of batches 47 18 65
What is the amount of Machining cost assigned to Product X?
a. $558,000
b. $756,000
c. $25,380
d. $252,000

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