Answered

From beginner to expert, IDNLearn.com has answers for everyone. Discover the information you need from our experienced professionals who provide accurate and reliable answers to all your questions.

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 :

Anthougoidn

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 value your presence here. Keep sharing knowledge and helping others find the answers they need. This community is the perfect place to learn together. IDNLearn.com has the solutions to your questions. Thanks for stopping by, and come back for more insightful information.