Culver,Inc

question 5

Multiple Choice

Culver,Inc.produces two different products (Product V3 and Product G8) using two different activities: Machining,which uses machine hours as an activity driver,and Inspection,which uses number of batches as an activity driver.Usage of the activity drivers are as follows: The activity rate for Machining is $67.50 per machine hour.What is the total cost of Machining?

• A)$274,050
• B)$67,500
• C)$202,500
• D)$270,000

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