3 Lynwood, Inc. produces two different products (Product A and Product...
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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 $150 per machine hour and the activity rate for Inspection is $570 per batch. The activity drivers are used as follows: Product A Product X Total Machine hours 1,900 3,200 5,100 Number of batches 54 21 75 What is the amount of Machining cost assigned to Product X? Multiple Choice $480,000 $1083000 530.780
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