Lufthansa, Inc. uses two different carriers (Airbus and Boeing) and allocated costs with two different...
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Lufthansa, Inc. uses two different carriers (Airbus and Boeing) and allocated costs with two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of round trips as an activity driver. The activity rate for Machining is $180 per machine hour, and the activity rate for Inspection is $540 per batch. The activity drivers are used as follows:
| Airbus | Boeing | Total | |
| Machine hours | 1,400 | 3,100 | 4,500 |
| Number of round trips | 47 | 18 | 65 |
What is the amount of Inspection cost assigned to Airbus?
Multiple Choice
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$25,380
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$35,100
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$252,000
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$9,720
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