Question

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 $140 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 1,800 3,100 4,900 Number of batches 46 19 65 What is the amount of Machining cost assigned to Product X

Answer 1

$434,000

Step-by-step explanation:

Total machining cost = Number of machine hour * Rate per machine hour

= 3,100 * $140

= $434,000

Hence, The total machining cost allocated to product X is $434,000.​