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What proportion of inspection activity is used by product z

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Question - Jefferson, Inc. produces two different products (Product 5 and Product Z) 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. The activity drivers are used as follows:

Product 5 Product Z Total

Machine hours 1,200 4,800 6,000

Number of batches 60 20 80

What proportion of Inspection activity is used by Product Z?

25%

33%

67%

75%

Reference no: EM131692460

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