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25 April, 11:23

Jackson, 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 $306,000, while the cost of Inspection is $46,000. Product 5 uses 35% of total machine hours and 40% of total batches. What is the total Inspection cost assigned to Product Z

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  1. 25 April, 15:02
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    The total Inspection cost assigned to Product Z $ 21,600

    Explanation:

    Jackson, Inc.

    Total Product 5 Product Z

    Cost % Amount % Amount

    Machining, $306,000, 35 107,100 65 198,900

    Inspection $46,000 40 18,400 60 21,600

    Total $ 125,500 $ 220,500

    The total Inspection cost assigned to Product Z $ 21,600

    The total Machining cost assigned to Product Z $ 198,900

    The total Inspection cost assigned to Product 5 $ 18,400

    The total Machining cost assigned to Product 5 $ 107,9100
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