Cottonwood, Inc. produces two different products (Standard and Luxury) using two different activities: Machining, which...
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Cottonwood, Inc. produces two different products (Standard and Luxury) 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 $255,000, while the cost of Inspection is $35,000. Standard uses 33% of total machine hours and 50% of total batches. What is the total activity cost assigned to Luxury?
$188,350
$170,850
$101,650
$17,500
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