Answer:
Machining cost assigned to Product A $380,000
Explanation:
Lynwood, Inc.
Activity Activity Driver Rate
Machining, per hour $200 per machine hour
Inspection, number of batches , $500 per batch
<em>This is the consumption per product.</em>
Product A Product X Total
Machine hours 1,900 3,900 5,800
Number of batches 45 22 67
<em>We multiply the rate of machining with the no of hours for Product A to get the Machining cost assigned to Product A.</em>
Machining cost assigned to Product A =Rate * No of Hours
Machining cost assigned to Product A = $ 200 * 1900= $ 380,000