Jefferson,Inc

question 70

Multiple Choice

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 $500,000,while the cost of Inspection is $30,000.The activity drivers are used as follows: What proportion of Machining activity is used by Product Z?

• A)25%
• B)33%
• C)67%
• D)80%

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