Culver, Inc. produces two different products (Product V3 and Product G8) 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 drivers are used as follows: The activity rate for Machining is $67.50 per machine hour. What is the total cost of Machining?
A) $274,050
B) $67,500
C) $202,500
D) $270,000

Question

Culver, Inc. produces two different products (Product V3 and Product G8) 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 drivers are used as follows:  The activity rate for Machining is $67.50 per machine hour. What is the total cost of Machining?
A) $274,050 
B) $67,500 
C) $202,500 
D) $270,000

Quizplus · Accepted Answer

The Answer of Culver, Inc. produces two different products (Product V3 and Product G8) 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 drivers are used as follows:  The activity rate for Machining is $67.50 per machine hour. What is the total cost of Machining?
A) $274,050 
B) $67,500 
C) $202,500 
D) $270,000