Macnine nours Number of batches. Multiple Choice O What is the amount of Inspection cost assigned to Product A? $128,000 $23,920 $9,500 1, 200 46 $32,000 3,200 16 4,400 62 B

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter11: Strategic Cost Management
Section: Chapter Questions
Problem 24P: Evans, Inc., has a unit-based costing system. Evanss Miami plant produces 10 different electronic...
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Macnine nours
Number of batches.
Multiple Choice
O
What is the amount of Inspection cost assigned to Product A?
$128,000
$23,920
$9,500
1, 200
46
$32,000
3,200
16
4,400
62
B
Transcribed Image Text:Macnine nours Number of batches. Multiple Choice O What is the amount of Inspection cost assigned to Product A? $128,000 $23,920 $9,500 1, 200 46 $32,000 3,200 16 4,400 62 B
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:
Machine hours
Number of batches
Multiple Choice
3,200
16
What is the amount of Inspection cost assigned to Product A?
$128.000
$23,920
Product A Product X
1,200
46
$9,500
Total
4,400
62
Transcribed Image Text: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: Machine hours Number of batches Multiple Choice 3,200 16 What is the amount of Inspection cost assigned to Product A? $128.000 $23,920 Product A Product X 1,200 46 $9,500 Total 4,400 62
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