What is the total activity cost assigned to product x

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Problem 1: COVID Co. produces two different products (A and 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 cost of Machining is $500,000, while the cost of Inspection is $30,000. Product A uses 30% of total machine hours and 70% of total batches. What is the total activity cost assigned to product X?

Select one:

a. $125,000

b. None of the given ANSWER

c. $22,500

d. $359,000

e. $171,000

Reference no: EM132788527

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