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: Product 5Product ZTotalMachine hours1,2004,8006,000Number of batches602080What proportion of Inspection activity is used by Product Z?
A. 67%
B. 75%
C. 33%
D. 25%
Answer: D
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