Jackson, 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 $306,000, while the cost of Inspection is $46,000. Product 5 uses 35% of total machine hours and 40% of total batches. What is the total Inspection cost assigned to Product Z

The total Inspection cost assigned to Product Z $ 21,600

Explanation:

Jackson, Inc.

                        Total                      Product 5             Product Z

                        Cost                    %         Amount        %    Amount                                  

Machining,    $306,000,          35       107,100         65     198,900

Inspection      $46,000            40       18,400           60      21,600

Total                                                    $  125,500                  $ 220,500

The total Inspection cost assigned to Product Z $ 21,600

The total Machining cost assigned to Product Z $ 198,900

The total Inspection cost assigned to Product 5  $ 18,400

The total Machining cost assigned to Product 5 $ 107,9100

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