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sweet-ann [11.9K]
3 years ago
9

Jefferson, 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 $110,000, while the cost of Inspection is $42,560. The activity drivers are used as follows: Product 5 Product Z Total Machine hours 1,100 3,300 4,400 Number of batches 54 22 76 What proportion of Machining activity is used by Product 5
Business
1 answer:
Julli [10]3 years ago
7 0

Answer:

25%

Explanation:

Calculation for the proportion of Machining activity used by Product 5

Using this formula

Machining activity = Product 5 Machine hours /Total machine hours

Let plug in the formula

Machining activity = 1,100/4,400

Machining activity = 0.25×100

Machining activity = 25%

Therefore the proportion of Machining activity used by Product 5 is 25%

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