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Washington, Inc

Question 38

Multiple Choice

Washington, Inc. produces two different products (Product C and Product 2) 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 $750,000, while the cost of Inspection is $90,000. The activity drivers are used as follows: Washington, Inc. produces two different products (Product C and Product 2) 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 $750,000, while the cost of Inspection is $90,000. The activity drivers are used as follows: What is the activity rate for Machining? A) $187.50 per machine hour B) $166.67 per machine hour C) $250.00 per machine hour D) $5750.00 per machine hour What is the activity rate for Machining?


A) $187.50 per machine hour
B) $166.67 per machine hour
C) $250.00 per machine hour
D) $5750.00 per machine hour

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