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 Inspection is $750 per batch. What is the total cost of Inspection?
A) $11,250
B) $33,750
C) $45,000
D) $75,000

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 Inspection is $750 per batch. What is the total cost of Inspection?
A) $11,250 
B) $33,750 
C) $45,000 
D) $75,000

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 Inspection is $750 per batch. What is the total cost of Inspection?
A) $11,250 
B) $33,750 
C) $45,000 
D) $75,000