Calverton, Inc. produces two different products (Standard and Luxury) using two different activities: Machining, which uses machine hours as an activ driver, and Inspection, which uses number of batches as an activity driver. The cost of Machining is $780,000, while the cost of Inspection is $46,80C Standard is assigned $452,400 in Machining cost, and $35,568 in Inspection cost. What proportion of Inspection activity is used by Luxury? Multiple Choice 32% 24% 69% 66%

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Chapter6: Activity-based, Variable, And Absorption Costing
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9.
Calverton, Inc. produces two different products (Standard and Luxury) 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 $780,000, while the cost of Inspection is $46,800.
Standard is assigned $452,400 in Machining cost, and $35,568 in Inspection cost. What proportion of Inspection activity is used by Luxury?
00:41:23
Multiple Choice
32%
24%
69%
66%
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Transcribed Image Text:9. Calverton, Inc. produces two different products (Standard and Luxury) 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 $780,000, while the cost of Inspection is $46,800. Standard is assigned $452,400 in Machining cost, and $35,568 in Inspection cost. What proportion of Inspection activity is used by Luxury? 00:41:23 Multiple Choice 32% 24% 69% 66% ( Prev 9 of 10 Next > MacBook Pro %23 96 2 3 4 6 8 Q E R P A D G H J K > V M command command option O O O
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