# Cottonwood, Inc. produces two different products (Standard and Luxury) using two different activities: Machining, which uses...

###### Question:

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 $500,000, while the cost of Inspection is$30,000. Standard uses 30% of total machine hours and 70% of total batches. What is the total activity cost assigned to Standard?
Multiple Choice O $359.000 O$171,000 o o O $22.500$125.000

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