XYZ Co. produces two different products (Product Y 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 $500,000, while the cost of Inspection is $30,00m Product Y uses 20% of total machine hours and 75% of total batches. What is the total Machining cost assigned to Product Y? O a. None of the given answer is correct. O b. $100,000 Oc. $375,000 O d. $7,500 $22,500

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XYZ Co. produces two different products (Product Y 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 $500,000, while the cost of Inspection is $30,00
Product Y uses 20% of total machine hours and 75% of total batches. What is the total Machining cost
assigned to Product Y?
O a.
None of the given answer is correct.
O b. $100,000
O c.
$375,000
O d. $7,500
O e. $22,500
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Transcribed Image Text:XYZ Co. produces two different products (Product Y 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 $500,000, while the cost of Inspection is $30,00 Product Y uses 20% of total machine hours and 75% of total batches. What is the total Machining cost assigned to Product Y? O a. None of the given answer is correct. O b. $100,000 O c. $375,000 O d. $7,500 O e. $22,500 NEXT PAGE POR Esc Ftock F1 F2 F4 FB F6 F7 F8 F9 F10 23 24 % & 3. 6. 7 V 8 IS CF 1G H K L. 3 CV B y NiM
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