Jefferson, Incorporated, produces two products (Product 5 and Product Z) using two activities: Machining, which...
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Accounting
Jefferson, Incorporated, produces two products (Product 5 and Product Z) using two activities: Machining, which uses machine hours as the cost driver, and Inspection, which uses the number of batches as the cost driver. The cost of Machining is $192,000, while the cost of Inspection is $41,440. The products have the following activity demands:
Product 5
Product Z
Total
Machine hours
1,920
2,880
4,800
Number of batches
45
30
75
What proportion of the Inspection activity is used by Product 5?
Multiple Choice
52%
48%
60%
40%
Answer & Explanation
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