What proportion of inspection activity is used by product z

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Reference no: EM131883406

Problem

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?

Reference no: EM131883406

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