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Washington, Inc

Question 100

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 Inspection? A) $45,000 per batch B) $1,500 per batch C) $6,000 per batch D) $2,000 per batch What is the activity rate for Inspection?


A) $45,000 per batch
B) $1,500 per batch
C) $6,000 per batch
D) $2,000 per batch

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