A company has two inspectors, each earning a salary of $75,000. One inspector works exclusively on inspecting parts received from outside suppliers, while the other spends 30% of her time inspecting parts and 70% of her time inspecting final products.
How much labor cost should be assigned to the activity, inspecting parts?
a. $100,000
b. $97,500
c. $75,000
d. $96,275
e. $95,000
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