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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 Solved by verified expert
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