Jefferson, Incorporated, produces two products (Product 5 an…
Jefferson, Incorporated, produces two products (Product 5 and Product Z) using two activities: Machining, which uses machine hours as the cost driver, and Inspection, which uses the number of batches as the cost driver. The cost of Machining is $176,400, while the cost of Inspection is $33,150. The products have the following activity demands: Product 5 Product Z Total Machine hours 1,764 3,136 4,900 Number of batches 46 19 65 What proportion of the Machining activity is used by Product 5?
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